Agency Agreement (Sale of Goods)
An Agency Agreement is a legal document for the appointment of an agent in Australia for the sale of goods on behalf of the principal.
4.3 (11 reviews)
Last updated December 16, 2024
Under 15 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
This Agency Agreement is a legal document for the appointment of an agent in Australia for the sale of goods on behalf of the principal. An agency relationship exists where one person, the agent, has authority or capacity to create legal relations between another person, the principal, and third parties such as a sales contract.
The relationship between agent and principal is different from that of employer and employee. It is important to clearly communicate the powers the agent has and any limitations on those powers. The agent can bind the principal depending on the scope of the powers. This agreement is not suitable for Real-Estate agents.
The Legal Risk Score of a Agency Agreement (Sale of Goods) Template
Our legal team have marked this document as medium risk considering:
- The document allows the Manufacturer to unilaterally change product specifications and prices, which could impact the Agent's ability to sell products and manage inventory effectively.
- The Manufacturer retains the right to directly sell to certain customers within the territory, potentially reducing the market available to the Agent and affecting their earning potential.
- The Manufacturer has the exclusive right to assign or transfer the agreement without the consent of the Agent, limiting the Agent's control over the future of the business relationship.
Overall, this document tends to favor the Manufacturer by providing them with significant control over the terms and execution of sales, as well as unilateral rights to modify the agreement's conditions or terminate it. Users familiar with agency agreements may find this document slightly more risky due to these provisions that heavily favor one party, and should consider whether the level of control retained by the Manufacturer aligns with their business goals and operational flexibility.
Agency Agreement (Sale of Goods) Checklist
Complete your free Agency Agreement (Sale of Goods) with our checklist
Verify Information Accuracy
Ensure all personal and business details, including names, addresses, and the description of goods, are accurate and reflect the current status of both parties.
Signature and Witnessing
Have the agreement signed by both the Manufacturer and the Agent, and if required by local laws or the agreement's terms, ensure it is witnessed by an independent third party.
Distribute Copies
Distribute signed copies of the agreement to both parties to ensure each has a record of the terms and conditions agreed upon.
Review Periodically
Set a schedule to review the agreement periodically, especially before the renewal or extension periods, to ensure all terms are still relevant and beneficial to both parties.
Use this Agency Agreement if:
- You wish to have an agent sell goods for you.
- You want an agent to add your products to its range
What does this Agency Agreement cover?
- Definitions
- Grant and reservations
- Principal’s obligations
- Agent's obligations
- Cancellation
- Cancellation consequences
- Miscellaneous
Further information:
View Sample Agency Agreement (Sale of Goods)
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