In this agreement, the agent agrees to take on, and the principal agrees to give the agent specific responsibilities so that the agent may act for the principal in the specific situations.
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An Agency Agreement is made between a principal and an agent. This document is also known as an Agent Agreement. The principal is the party who is "hiring" the agent. And the Agent is the party that will be acting on behalf of the principal. In this agreement, the agent agrees to take on, and the principal agrees to give the agent specific responsibilities so that the agent may act for the principal in the specific situations.
An agency agreement can be used for any agent-principal relationship, such as those for bigger businesses (where an agent might be acting for the principal among the public or signing agreements on behalf of the principal) to those for smaller business (where an agent might be doing one individual task for the principal).
An Agency Agreement differs from the Employment Agreement because here, no employment relationship is created. An employment relationship comes with additional benefits: things such as workers' compensation for some positions, or paid time off, or even health care benefits. An agency relationship will contain none of these benefits and will usually only last for a short time.
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The party filling the document will have to enter identifying information about the parties, as well as the description of the type of business that the principal generally engages in. Later on, it will be required to enter the most important characteristics of the agreement, such as the duration for the agency, fee information, and what exactly the agent will do.
A completed document should be printed and signed by both parties. We recommend keeping copies in case any future disputes arise.
This Agency Agreement will help specify the expectations of both parties before the agency relationship begins.
In the US, both federal and state laws cover Agency Agreements. Federal laws may restrict what services can be contracted foe and certain broad categories, like contracting for something that looks more like an employment relationship. Still, individual state laws may govern the interpretation of the contract in case of a dispute. State-specific laws generally cover the intricacies of principal/agent relationships.
