Need an Agency Agreement drawn up?

An agency agreement is a legal contract between two parties where one party (the principal) authorises the other (the agent) to act on their behalf in business dealings with third parties.

This agreement outlines the scope of the agent’s authority during decision-making, their responsibilities, and the terms of their relationship with the principal.

Agency Agreements are applicable to many different industries. Some examples of where an Agency Agreement is relevant include:

• Music artists hiring a talent agency to secure performance bookings.
• A company using a marketing agency to represent their brand and negotiate advertising deals.
• Authors engaging a literary agent to sell their books to publishers.
• Insurance underwriters using an insurance broker to sell policies and manage client relationships.
• A company working with a sales agent to build business relationships and sell its products in a specific region.

Agency Agreements can be beneficial on a financial and legal level.

Working with an agency/agent can allow the principal to broaden their business scope, build brand awareness, and ultimately close deals.

Implementing a legally-sound Agency Agreement sets expectations for each party, reduces potential misunderstandings, and protects the interest of both parties.

Your Agency Agreement is tailored to your industry and the type of business relationship you intend to have. Some common clauses include:

• Defined roles of each party
• Duration of the arrangement
• Confidentiality and non-disclosure
• The level of autonomy in agency decision-making
• Pay, commission, and benefits of referrals or deals
• Termination and notice period
• Liabilities
• Dispute resolution

Whilst templates for Agency Agreements are readily available, it’s important to exercise caution when using them.

An online template may be cost-efficient, but it is unlikely to contain terms relevant to your circumstances, and may not be up-to-date with industry standards or UK legislation.

Consulting with a commercial solicitor to draft or review your agreement will prevent potential issues down the line and ensure you’re protected in all eventualities.

If you decide to use a template and then ask a solicitor to check it, they may need to rewrite it.

The key stages involved in drafting an Agency Agreement include:

1. Initial discussions to understand the details of your matter
2. Due diligence on each party and proposed arrangement
3. Drafting the terms
4. Potential negotiations with the other party
5. Making any adjustments
6. Finalising the terms
7. Implementation

Depending on your matter, a typical review of your Agency Agreement will involve:

1. Initial consultation to understand the details
2. Outlining any issues in the current agreement
3. Tailoring any terms specific to your business
4. Making any necessary adjustments

If you need an Agency Agreement drafted or reviewed by a solicitor, we can help. Just give us a call on 0203 007 5500.

The time required to draft an Agency Agreement can vary significantly depending on the complexity of the arrangement and the level of negotiations involved.

Your solicitor will give you a time estimate upon further discussions of your matter.

The cost of a draft or review depends on the document length, the complexity of the agreement, and the revisions required.

Once you have outlined your needs with our solicitors, we can provide a fee estimate.

To request a callback from our commercial solicitors, please call us on 0203 007 5500.