Feb 20,2021 | 5 min read

Agency Agreement | Download Free Templates

What is an Agency Agreement ?

An agency agreement is established when an agent is empowered by the principal, to act on the principal's behalf. A principal who appoints an agent creates a statutory relationship with the agent. The agreement specifies the terms of the agency, such as what the agent can do and the consideration paid for the role of the agent.

Why is it is Important ?

Agency agreements can have multiple benefits for the principal, especially when the principal is the owner of a small business because the agents are professionals who have all of the specific skills needed to run a business.

1. An agent is in a specific type of association where he acts in the best interests of the principal.

2. The agreement also grants the agent the right that the principal determines, such as the exclusive right to act on his behalf.

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Lawyered Team

Lawyered Team