Agency Agreement
Category: Legal
Definition (plain English)
A contract appointing an agent to introduce, negotiate, or represent sales without necessarily buying and reselling goods as principal.
Why it matters commercially
Agency changes who owns customer relationships, commission obligations, authority to bind the seller, tax exposure, and termination risk.
Example
An exporter used an agency agreement for a new region but limited the agent authority to introductions until buyer credit and compliance checks were complete.
Common mistake
Calling a partner an agent without defining authority, commission base, customer ownership, exclusivity, expenses, compliance duties, and termination rights.
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