What is an Agency Agreement?

An Agency Agreement is a contract between 2 parties (usually a Principal and an Agent) and tends to arise where:

  • The Agent has authority to negotiate and conclude contracts on the Principal’s behalf
  • The Agent is a representative of the Principal but cannot enter into agreements (an introducer)
  • A del credere Agent who guarantees to the Principal that a third party shall fulfil its side of the contract.

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    Why are Agency Agreements needed?

    The Commercial Agents (Council Directive) Regulations 1993 provide for financial remedies in cases where an Agent’s contract is terminated, and this was up to 2 year’s commission. Given that there are restrictions placed on the Principal, it is important to make sure that Agency Agreements are correctly drafted and address the rights of the Agent. If businesses are not aware of the legal requirements, then they may incur larger losses than budgeted.

    What are the benefits of Agency Agreements?

    • Limit your business’s financial exposure upon termination of an agency contract.
    • Provide certainty for your business relationship with an Agent.
    • Define how much authority you wish for an Agent to have.
    • Control the impact of the Commercial Agents Regulations.

    Who can we help?

    • Businesses looking to appoint Agents.
    • Businesses which have already engaged Agents.
    • Businesses looking for legal advice on Agency law and Commercial Agency law.
    • Agents wanting to review new or existing Agency contracts with a Principal.

    How much do you charge?

    We like to offer fixed fees where we can, so please contact us to receive a fixed price.

    • To draft an Agency Agreement, our prices begin from £600.00;
    • To negotiate an Agency Agreement, our prices begin from £300.00;
    • To negotiate an Agency Agreement with another party’s legal representatives, our prices begin from £450.00.

    How do I get started?

    1. We’ll ask you to sign and return our Client Care Letter and to place monies on account.
      1. Depending on your availability, we’ll schedule a call within 7 working days, to take your instructions and learn about your business.
      1. We’ll aim to provide you with a first draft 7 workings days after taking your instructions.
      1. Once we receive your feedback, we’ll send you a final version of your Agency Agreement, ready for your business to use.

    Contact one of our Commercial Contract lawyers to begin your journey with us today.


    • Review an existing Agency Agreement
    • Provide a legal opinion and summary of key clauses
    • No amendments


    • Review an existing Franchise Agreement
    • Make amendments to the document
    • Correspond with the other party’s solicitors


    • Create a new Franchise Agreement
    • We’ll prepare a first draft for you to review and provide feedback
    • We’ll incorporate any amendments and provide you with a second and final version.