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Agency Agreement for the United States

Agency Agreement Template for United States

An Agency Agreement is a legally binding contract under U.S. law that establishes and governs the relationship between a Principal and an Agent, where the Agent is authorized to act on behalf of the Principal within specified parameters. The agreement outlines the scope of authority, duties, compensation, term, and termination conditions, while addressing key aspects such as confidentiality, liability, and compliance with relevant federal and state regulations. This document is crucial for protecting both parties' interests and clearly defining their respective rights and obligations within the agency relationship.

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What is a Agency Agreement?

The Agency Agreement is a fundamental business document used when one party (Principal) wishes to delegate authority to another party (Agent) to act on their behalf. This contract type is essential across various industries and is particularly important in the United States, where it must comply with both federal and state agency laws. An Agency Agreement typically includes detailed provisions about the scope of authority, territory, commission structures, and performance expectations. It serves to protect both parties by clearly defining their rights, responsibilities, and limitations while ensuring compliance with relevant regulations. This document is crucial when establishing new business relationships, entering new markets, or expanding distribution networks through representative arrangements.

What sections should be included in a Agency Agreement?

1. Parties: Identification and details of the Principal and Agent

2. Background/Recitals: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of agent appointment and scope of authority

5. Duties and Responsibilities: Specific obligations of both Principal and Agent

6. Term and Termination: Duration of agreement and termination provisions

7. Compensation: Payment terms, commission structures, and expenses

8. Confidentiality: Protection of confidential information

9. Governing Law: Applicable jurisdiction and dispute resolution

What sections are optional to include in a Agency Agreement?

1. Non-Competition: Restrictions on competitive activities - used when protecting market position or sensitive information

2. Insurance: Required insurance coverage - used when agent activities involve significant risk

3. Intellectual Property: IP ownership and usage rights - used when IP is created or used during agency

4. Force Majeure: Provisions for unforeseen circumstances - used for long-term or high-value relationships

5. Data Protection: Privacy and data handling requirements - used when personal data is processed

What schedules should be included in a Agency Agreement?

1. Territory Schedule: Defined geographical areas of operation

2. Commission Schedule: Detailed commission calculation methods

3. Service Level Agreement: Performance metrics and standards

4. Product Schedule: List of products/services covered by agreement

5. Compliance Requirements: Industry-specific regulatory requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Clauses



































Industries

Restatement (Third) of Agency: Fundamental legal principles governing agency relationships in the US, including formation, duties, authority, and termination of agency relationships

Federal Arbitration Act: Federal law governing arbitration provisions in contracts, potentially relevant if including dispute resolution mechanisms

Interstate Commerce Laws: Federal regulations governing business conducted across state lines, applicable if the agency agreement involves multi-state operations

Federal Antitrust Laws: Including Sherman Act and Clayton Act, governing competition and preventing monopolistic practices in agency relationships

State Agency Statutes: State-specific laws governing agency relationships and their formation, varying by jurisdiction

State Contract Laws: General contract principles and requirements specific to each state's jurisdiction

State Licensing Requirements: Specific licensing and registration requirements for agents in different industries and jurisdictions

Fiduciary Duty Requirements: State-specific rules governing the fiduciary responsibilities of agents to their principals

Fair Labor Standards Act: Federal law governing wages and hours, relevant if agency relationship could be construed as employment

Equal Employment Opportunity Laws: Federal anti-discrimination regulations that may apply if agency relationship has employment characteristics

Worker Classification Rules: Federal and state guidelines for determining independent contractor versus employee status

Industry-Specific Regulations: Specialized rules for particular sectors (e.g., securities, real estate, insurance) affecting agency relationships

Statute of Frauds: State law requirements for contracts that must be in writing to be enforceable

Federal Trade Commission Regulations: Federal consumer protection rules that may affect agency relationships with consumer impact

State Privacy Laws: State-specific requirements for handling personal and business information in agency relationships

Federal Privacy Regulations: Federal requirements for data protection and privacy in business relationships

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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