Drafting Agency Agreements
With a properly drafted agency agreement, a legal relation between one person and another person or entity (agency) can be created. The fiduciary relationship set forth by the agency agreement involves the first party, which is the principal who will agree in relation to the actions of the second party, which is the agent. Failing to have an airtight agency agreement can be detrimental to maintaining this relationship. At HHS Lawyers, all details of agency are recorded in a properly drafted agreement and are often used in the following situations:
- Outsourcing vendors
- Hiring legal representation
- Working with realtors
- Hiring an accountant
- Using marketing services
- Employing investment brokers
- Business employees making decisions for their employee
The lawyers and legal consultants that comprise our legal drafting team in Dubai include key components in every agency agreement, which are as follows:
The names of the principal and agent
It is recommended to mention the names of the principal and the agent in this kind of agreement or contract. The relation of the principal and agent can be explained in a written contract and is expressed in clear legal terms.
The agent acts on behalf of the principal and also carries the assigned task on the best interest of the principal.
A description of the purpose of the agency
This clause contains the complete description of the work and purpose of creating the agency contract. The duties and responsibility of an agent are outlined clearly under this section.
Whether it is an exclusive or nonexclusive agency
It is also important to mention that the type of contact is exclusive or nonexclusive. An exclusive agency is an agreement between a seller or agent granting the firm or agent the right to be the only firm or agent to market and sell.
How long the agency lasts
Agency contracts can be short term or long term, and it mostly depends upon the type of contract. Once the purpose for which the agent was appointed is complete the agency agreement can expire and such time limit is to be clearly mentioned in the contract.
What the agent can and cannot do for the principal
This section contains certain details about the limitation of an agent’s duties. This can outline certain restrictions of an agent. The agent is only required to perform the function(s) as mentioned in the agency agreement.
The geographic area where the agent can act
An agent is given a specified location to act or perform his duty in his agency contract. But in some cases, the agent has to work under different areas if the purpose of the work and situation demands. Such geographical areas have to be clearly stated in the contract.
The compensation for the agent
An agent may or may not be entitled to receiving a specific amount of compensation once the agency is completed. Such amount has to be mentioned in the agency agreement, if applicable.
How to terminate the agency
The governed rules and regulations have to be outline under this section. This may include consequences if it is terminated by the agent. If so, the agent may have to compensate the principal for losses.
This is one of the important aspects for many businesses and employment. It is advisable to hire our legal drafting team in Dubai for your agency needs. At HHS Lawyers, our expert team can provide you with the relevant knowledge and legal opinion related to agency and agency agreements in Dubai. The firm may be able to help ensure your agency agreement is legally binding and includes all the essential provisions.
HHS Lawyers is a leading service provider for legal drafting services in Dubai. We assist clients by protecting their rights and interests through bespoke contracts. Contact us today for expert advisory on the drafting of agency contracts in UAE, specifically agency agreements.
What are the kinds of agency contracts or agreements that may be made?
There are several types of agency contracts, and some of them include general agent agreement, special agent agreement, sub agent agreement, agency cooled with interest agreement.
How are you able to terminate an agency contract or agreement?
The way to terminate any agency is by mutual agreement between the principal and his agent. Parties may terminate for any reason as agreed.
Explain the term ‘selling agency agreement’?
This term means giving the right to sell a product or service as per the agency agreement. Naturally, the product or service has to be specified in the contract. The contract will give the right to the seller (agent) to claim the product or service and find a buyer or customer for it. This process is done through creating networks or creating their own agency.