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Agency Agreements

These Agency Agreements are used to set out the terms upon which a principal engages an agent to act on its behalf on either an exclusive or non-exclusive basis. If the agent is exclusive, the principal cannot appoint any one else either generally or for the specific territory, time or purpose stated in the agency agreement.

It is important to set out the powers the agent has and any limitations on those powers. Provided the agent acts within the scope of its authority, the agent will bind the principal. If the principal holds the agent out to have authority, then even if there is a limitation in the agency agreement, the principal will still be bound. The agency agreement should also set out the remuneration of the agent, the specific tasks the agent will perform and the term or period of the agency.

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