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Agency Contract

What is an agency contract?

The agency contract is a contract in which a person, physical or legal, known as broker, which assumes the commitment vis-à-vis another party (the main businessman) of continuously and stably carry out the promotion, negotiation (and conclusion) of commercial transactions in the name and on behalf of the entrepreneur, acting as an independent intermediary and without assuming, unless otherwise agreed, the risks and profits derived from said operations, in exchange for financial compensation. Therefore, the main objective of the commercial agent is to promote, stimulate and attract a clientele in order to contribute to the optimal positioning of the main entrepreneur in the market.

When to use this contract?

The agency contract is used when you want to establish a contractual relationship between a commercial agent and a main employer. This type of contract is commonly used in situations where the entrepreneur wishes to delegate to the agent the task of promoting, negotiating and concluding commercial operations in his name and on his behalf.

The importance of the agent acting independently is reiterated. If you want to establish parameters on how the work is organized, the time or the performance criteria, in that case it would be more appropriate to use the employment contract.

When not to use this document?

The agency contract is used in the business environment for the agent to carry out negotiations on behalf and account of the company. In the event that you are in a situation in which you are looking for the promotion or sale of commercial products to be specifically promoted, the appropriate contract would be the mercantile commission contract.

Essential content

  • Identification of the parties.
  • Object of the contract.
  • Geographic scope.
  • Remuneration.
  • Jurisdiction and applicable law.

Optional content

  • Exclusivity clause.
  • Confidentiality clause.

Necessary information

In this type of contract, the key characteristic lies in the independence of the commercial agent with respect to the employer or principal, which implies that there is no employment relationship between both parties. Even if the signed contract establishes that it is an agency contract, the law considers that there is no independence when the agent cannot organize his professional activity or manage his time according to his own criteria.

Applicable law

How much does it cost to make this contract with LexDoka?

Currently, we do not have an automated model for this contract. However, if you are interested, please let us know through this contact form, and we will take it into account to develop it and notify you when it is available. If you need it urgently, LexDoka offers a personalized contract automation service where we will work together with you to see what your needs are and develop it exclusively for you in the shortest possible time. If you are interested contact us.

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