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Agency Agreement: Establish Legal Relationship with Your Business Representatives
An Agency Agreement creates a formal relationship between your business and agents who will represent you, such as sales representatives, marketing agencies, or brokers. Creating this document through Bind ensures all responsibilities, compensation structures, and terms are clearly defined to protect your business interests.
Appointment
This section establishes the scope of the agent's authority, specifying whether they are exclusive or non-exclusive representatives, defining the products or services they will represent, and outlining the geographic territory they will cover.
Duties of the Agent
This part details what the agent is required to do, such as promoting products, generating sales, providing market feedback, and complying with relevant regulations, as well as what they are prohibited from doing, such as binding the company contractually or selling competing products.
Commission and Payment
This section outlines the compensation structure for the agent, including commission percentages, payment schedules, and any conditions or adjustments that may apply to commission calculations.
Expenses
This part clarifies which party is responsible for covering various business expenses like travel, marketing, and operational costs incurred during the agency relationship.
Confidentiality
This section creates obligations to protect sensitive business information shared during the relationship, specifying what constitutes confidential information, exceptions to confidentiality requirements, and how long these obligations remain in effect.
Term and Termination
This part establishes the duration of the agreement, procedures for renewal, notice periods for termination, and circumstances under which either party may terminate the agreement immediately.
Dispute Resolution
This section outlines the process for resolving any disagreements that may arise during the relationship, typically starting with negotiation and potentially progressing to mediation or arbitration.
General Provisions
This part includes standard legal clauses that address execution requirements, amendment procedures, notice delivery methods, and severability of contract provisions.
Governing Law and Jurisdiction
This section allows you to select which country's or state's laws will govern the agreement and where any legal proceedings would take place if disputes arise.
With Bind, you can electronically sign this document and request signatures from your agents in just minutes online. This streamlines your onboarding process and allows you to start working with representatives quickly while ensuring proper legal protection. Having a clear agency agreement helps prevent misunderstandings about responsibilities and compensation, reducing the risk of disputes and maintaining positive business relationships.
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