Commercial agency agreement template
A commercial agency agreement appoints a self-employed sales agent to find or conclude sales of a business's goods in an agreed territory, in return for commission. It covers whether the agent is exclusive, how commission is worked out and when it is due, and what the agent is paid when the agreement ends. It is written for a business selling goods through an agent in Great Britain.
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What changes each time
19 values. Everything else is your wording, kept exactly.
The parties
- Principal's full legal name
- Company number
- Agent's full legal name
- Address
The appointment
- Exclusive or non-exclusive
- Negotiate, or negotiate and conclude sales
- Start date
- Fixed period
- Products and territory
Commission
- Commission rate by product and customer type
- When commission is due
- Commission period after the agreement ends
- Statement and payment frequency
Ending the agreement
- Notice period
- Notice end date
- Payment on termination
- Competition restriction period
Signing
- Signatory name and job title
- Date signed
The rules it usually needs
Written in plain English when the template is set up.
- One of several wordings
“Describe the agent as a company with a registered number, or as an individual with an address.”
Only the chosen description of the agent appears.
- One of several wordings
“Appoint the agent as exclusive or non-exclusive.”
The appointment clause reads as the chosen option.
- One of several wordings
“Let the agent negotiate sales only, or negotiate and conclude them.”
The appointment clause reads as the chosen option.
- Only when…
“Include an exclusivity clause only when the agent is exclusive”
The clause stopping the principal appointing another agent appears, with a choice on whether commission is payable on the principal's own direct sales.
- One of several wordings
“Let the agreement run indefinitely, or for a fixed period that then continues.”
The term clause reads as the chosen option.
- Only when…
“Include commission on the principal's direct orders only when the agent is exclusive”
The clause giving commission on orders the principal obtains directly in the territory appears.
- One of several wordings
“Make commission due when the customer pays, or when the order is delivered.”
The commission timing reads as the chosen option.
- Only when…
“Include a fixed period for post-termination commission only when the parties want to set the period”
The agreed number of months appears in the commission clause.
- Only when…
“Include a competition restriction after the end only when it is agreed”
The clause appears with the length of the restriction and whether it covers the territory or the agent's customers.
- Only when…
“Include a longer notice period only when the parties agree longer notice than the statutory minimum”
The longer period appears, with the rule that the principal's notice may not be shorter than the agent's.
- One of several wordings
“End the notice period on the last day of a calendar month, or on any day.”
The notice clause reads as the chosen option.
- One of several wordings
“Pay the agent compensation on termination, or an indemnity.”
The termination payment clause reads as the chosen option.
- Only when…
“Include a row for customers reserved to the principal only when there are named accounts the agent may not approach”
The row appears in the products and territory schedule.
- Once for each item
“One row for each rate in the commission schedule.”
The schedule gets a row for each rate, product group and customer type.
- One of several wordings
“Sign for a company by a director, or as the agent personally.”
The signature block reads as the chosen option.
Questions people ask
What is a commercial agency agreement?
A contract appointing an agent to sell or arrange sales of goods for a business, usually paid by commission. The agent is self-employed and does not buy the goods.
What is the difference between an agent and a distributor?
An agent finds or concludes sales on the principal's behalf and is paid commission. A distributor buys the goods and resells them at its own risk.
Is an agent entitled to anything when the agreement ends?
Under the Commercial Agents (Council Directive) Regulations 1993, an agent selling goods is entitled to compensation or an indemnity. The agreement lets you choose which.
Does the agent have to be exclusive?
No. The agreement works for exclusive and non-exclusive appointments, and the exclusivity clauses appear only if you choose exclusive.
Does it cover agents who sell services?
No. It is written for agents selling goods in Great Britain.
Use this template
It opens in DocuWeave as a template you can check, change and publish. Nothing is used until you do.