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Sales and commercial

Agency agreement template

Commercial agency agreement: A commercial agency agreement appoints an agent to find customers or negotiate sales on behalf of a principal, usually in return for commission.

Last reviewed 6 November 2026 · 6 clauses · General guidance, not legal advice

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When to use a commercial agency agreement

  • Sales agents in a new market
  • Commission-only representatives
  • Introducing products to retail buyers

Agency agreement template: clause-by-clause outline

Sample starting wording for each clause. Replace the text in [brackets] with your details.

  1. Appointment

    The Principal appoints the Agent to [negotiate / negotiate and conclude] sales of the Products in [territory].

  2. Duties

    The Agent will act in good faith, follow the Principal’s reasonable instructions and pass on enquiries promptly.

  3. Commission

    The Agent earns [x]% commission on orders from customers it introduces, payable when the customer pays.

  4. Authority

    The Agent may not bind the Principal to any contract without written approval.

  5. Information

    The Principal will give the Agent price lists, product information and copies of invoices for commission.

  6. Termination

    Either party may end this Agreement on the notice period required by law, and at least [3] months.

What to check before you sign

  • Do local laws (for example in the EU and UK) entitle the agent to compensation or indemnity on termination?
  • Can the agent bind the principal?
  • When is commission earned and paid?

How to send a commercial agency agreement for e-signature

  1. Draft or upload it. Use the outline above with your own wording, upload an existing document, or save it as your organisation’s template.
  2. Check it against your playbook. Points outside your positions are flagged, and approval rules route it to Legal when needed.
  3. Send it by email. Signers get a plain-language review and a secure link, sign on any device in the order you set, and can suggest changes as tracked changes.
  4. Keep the signed PDF. Everyone receives it with a certificate of completion, and key dates go to Upcoming with reminders.

Agency agreement template: frequently asked questions

Do agents get paid when the agreement ends?

In some countries, yes. EU-derived laws give commercial agents a right to compensation or indemnity on termination.

Is an agent an employee?

No. A commercial agent is self-employed, but the agreement should reflect the real relationship.

Is an electronically signed commercial agency agreement legally binding?

In most countries, yes. E-signatures are recognised for commercial contracts under laws such as the ESIGN Act (US), eIDAS (EU), the Electronic Communications Act (UK) and the Information Technology Act (India). econtracts.ai adds a certificate of completion with each signer’s identity check and a fingerprint of the signed content.

Can I get a commercial agency agreement I received reviewed?

Yes. Upload it to econtracts.ai and you get a plain-language review: key dates, money and points to check, each quoting the clause it comes from.

Related contract templates

This outline is a starting point for discussion, not legal advice, and it is not a complete contract. Laws differ by country and sector; have a qualified lawyer review contracts that matter.