An agent is someone who sells goods or services on behalf of another party (the principal) or solicits customers on behalf of the principal. The agent can enter into legally binding contracts with customers on behalf of the principal therefore it is vitally important that an agency agreement is entered into which protects the interest of both parties should a dispute arise.
Things to Consider
An agent can be an exclusive or non-exclusive agent, an exclusive agent only works for you or your company whereas a non-exclusive agent has the discretion to work for multiple organisations at the same time. Whilst there are advantages to allowing an agent to be non-exclusive there are inherent risks that your agent may send business to your competitors if they offer better rates of commission.
If you are appointing an agent you may only want the agent to market your products and not actually enter into any contractual commitments on your behalf. This reduces your potential liability as the agent shall be liable for any contracts illegally entered into.
You may also want the agent to meet certain targets and if those targets are not met you may wish the agency agreement to be terminated.
If you are an agent or wish to appoint an agent our commercial team can assist you whether it is reviewing your current agreement or drafting a bespoke agency agreement.
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