agency agreement

An agency agreement is a contract where a supplier or provider of services appoints a business in a territory to procure orders for the product or service on behalf of the supplier. The appointment of an agent may be exclusive, non-exclusive or a sole appointment. Agency contracts contrast with distribution contracts in that agents procure orders for and on behalf of the supplier and take a commission, whereas in distribution contracts, the distributor sells the goods or services on their own account.

Usage: The agency agreement had a term of 10 years.

Related Words: distribution agreement; contract; agreement.