Agency Agreement Definition

Written by neil kokemuller Google
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Agency Agreement Definition
An agency agreement establishes an agent's right to represent a client in various capacities. (Finger pointing to the words in agreement image by Dmitry Goygel-Sokol from

An agency agreement establishes the contractual terms under which a client appoints an agent to represent him or his work through marketing and promotion. The agent receives a fee or commission for his expertise in connecting the client with an opportunity.

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Items covered in the agency agreement include the nature of the agent's representation, terms of the agreement, declaration of the agent's duties with regard to contracts and finances, warranties, and the agent's commission.

Common Examples

Agency agreements are common in real estate, marketing and advertising, sports, law, entertainment, writing and other industries in which people with specialised talents hire professional representatives. Agents can also represent common citizens in legal and business matters.


An agent typically offers expertise in general aspects of representation, which can include marketing, negotiations and contract writing. He should also have specialised knowledge of his industry.


A drawback of agency representation is that it requires trust by the principal in the agent. Though most agents operate under legal and ethical codes of conduct for their industry, instances have occurred where agents have failed to fulfil fiduciary responsibilities to clients.

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