Commercial Agency Agreement Template for Australia

The Commercial Agency Agreement is a crucial document for businesses operating in Australia who wish to expand their market reach through appointed representatives. This agreement is particularly relevant when a business (the principal) wants to authorize another party (the agent) to act on their behalf in specific commercial activities, such as sales, marketing, or distribution. The document needs to comply with Australian federal and state legislation, including the Competition and Consumer Act 2010, various state Fair Trading Acts, and relevant industry-specific regulations. It typically includes detailed provisions on the scope of authority, territorial rights, commission structures, performance targets, reporting obligations, and termination rights. This agreement is essential for protecting both parties' interests and ensuring clarity in their commercial relationship, particularly important in Australia's complex regulatory environment.

1. Parties: Identifies and provides full details of the principal and agent, including ABN/ACN numbers and registered addresses

2. Background: Sets out the context of the agreement, including the principal's business and desire to appoint an agent

3. Definitions and Interpretation: Defines key terms used in the agreement and establishes interpretation rules

4. Appointment and Scope: Establishes the agent's appointment, territory, and whether the appointment is exclusive or non-exclusive

5. Term: Specifies the duration of the agreement, including commencement date and any renewal provisions

6. Agent's Authority: Clearly defines what the agent can and cannot do on behalf of the principal

7. Agent's Duties and Obligations: Details the specific responsibilities and standards of performance required from the agent

8. Principal's Duties and Obligations: Outlines the principal's responsibilities to the agent

9. Remuneration and Payment Terms: Details the commission structure, payment terms, and any other financial arrangements

10. Reporting and Account Management: Specifies reporting requirements, frequency, and account management obligations

11. Intellectual Property: Addresses ownership and usage rights of trademarks, logos, and other IP

12. Confidentiality: Protects confidential information of both parties

13. Termination: Sets out grounds for termination and the process for ending the agreement

14. Post-Termination Obligations: Specifies obligations that survive termination and wind-down procedures

15. General Provisions: Includes standard boilerplate clauses such as notices, governing law, and dispute resolution