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What is the Agency Agreement

The Agency Agreement governs the relationship between a principal company and a commercial agent appointed to sell the company’s products or services in exchange for a commission.

The agency contract allows you to outsource the commercial and sales function instead of managing it internally with your own employees. The agent assumes the risk of the commercial activity since he receives his remuneration only when, and if, the customer pays (if the deal is ” successful “). The company can choose whether to allow the agent to directly conclude business with its customers (agency agreement with representation), or whether to allow him only to promote the sale of products, reserving the right to refuse the deals proposed by the agent (contract agency without representation).

The contract is used to regulate all aspects of the agency mandate. You can prevent the agent from taking on assignments with other companies by applying a single-firm agency agreement, or allow him to take on multiple assignments with the multi-firm agency agreement. The agent can also have exclusivity in a specific area, preventing the company from hiring other agents, and be forbidden to take on assignments from competing companies of the principal by inserting a non-competition clause.

When using the commercial agent contract

The agent can be a natural person (e.g. a small agent who promotes products directly) or a company (e.g. an agency that uses its own employees and collaborators) and can promote any type of contract except for employment (eg the agent can promote the purchase and sale of products or the stipulation of service contracts).

The agency mandate can also be used abroad for international agents operating in countries other than Italy. In all cases where one of the parties is foreign, the contract can be stipulated in English (agency agreement) to simplify the negotiation. The same is true in the case of an Italian agent and a foreign principal company.

The agency agreement provides for a real obligation on the part of the agent to sell the principal’s products (or services). In general, therefore, the agent’s main activity is precisely to sell the principal’s products. If the activity is of an occasional nature, the contract for a business finder must be used.

Furthermore, if the agent acts in his own name and on his own behalf and not on behalf of the principal, purchasing the goods to resell them to third parties, it will not be an agency mandate. In these cases, a different contract must be used, such as a distribution contract or an estimation contract (consignment).

What does the agency mandate model contain?

Our agency agreement meets all legal requirements. The main clauses included concern:

  • Purpose: the products or services that the agent undertakes to promote or sell
  • Zone: the territory within which the agent carries out his work (e.g. a region, a part of a region, or even the entire national territory)
  • Exclusive: to prohibit the agent from selling products (or services) of competitors in the assigned area
  • Executive customers: to reserve for the company some customers with whom it will deal directly
  • Single-mandate / Multi-mandate: to choose whether the agent can only take on more tasks or only the one with the company
  • Commissions: to establish the commission (e.g. a percentage of the deal) and specify the time of payment to the agent (e.g. the conclusion of the deal or the collection of the price paid by the customer)
  • Duration: the agency mandate can be for a term (e.g. for one year, two years, etc.) or for an indefinite period, i.e. without a deadline
  • Expense reimbursement: to choose whether to reimburse some expenses incurred by the agent
  • Advance commission: to advance part of the commissions to the agent for a limited period of time, at the beginning of the activity
  • Non-competition agreement: to prohibit the agent from not operating in the competition after the end of the agency mandate, he can enter into a non-competition agreement for no more than 24 months
  • English language: if the agent or company is foreign, it may be useful to draft the contract in English to simplify the negotiation

At the end of the interview, we will guide you step by step through all the necessary subsequent steps.

Information you need

To complete the contract, all the details of the agent and the principal company are required.

The document can be modified in all its parts without time limits. Don’t worry so if you don’t have all the information available during the interview, you can always enter it later.

Other names

  • Contract for commercial agents
  • The mandate of agency or representation
  • Commercial representation mandate
  • Agency contract
  • International agency agreement
  • Agency agreement in English
  • Agency agreement, Agency Contract, Agent Agreement, Agent Contract

Other useful templates and facsimiles

  • Business Agent Agreement: to allow a partner to occasionally promote a company’s products or services
  • Employment Contract for Employees: to hire an employee, a worker or a manager, even with a commission on sales
  • Distribution Agreement: to entrust a person with the purchase of goods or services and then revise them to third parties in a specific territory
  • Franchising contract: to create a network of affiliated points of sale and spread your products