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Independent Agent Agreement

Independent Agent Agreement Template for England and Wales

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Key Requirements PROMPT example:

Independent Agent Agreement

"I need an Independent Agent Agreement for appointing a sales representative in Yorkshire to sell our software products, with a 15% commission structure and a 2-year non-compete clause starting from March 2025."

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Document background
The Independent Agent Agreement is essential for businesses operating in England and Wales that wish to engage independent contractors for sales, marketing, or business development activities. This agreement is particularly important as it clearly defines the agent's independent status, distinguishing it from an employment relationship, while establishing the scope of authority, commission structures, and mutual obligations. The document ensures compliance with the Commercial Agents (Council Directive) Regulations 1993 and other relevant legislation, protecting both parties' interests while providing a clear framework for their business relationship.
Suggested Sections

1. Parties: Identification and details of the Principal and Agent

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of appointment and scope of authority

5. Agent's Duties: Core responsibilities and obligations of the Agent

6. Principal's Duties: Core responsibilities and obligations of the Principal

7. Commission Structure: Payment terms, calculation methods, and timing

8. Term and Termination: Duration and termination provisions

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. General Provisions: Standard boilerplate clauses including governing law, notices, and entire agreement

Optional Sections

1. Territory Rights: Geographical limitations of agent's authority, used when agent's activities are geographically restricted

2. Non-Compete: Restrictions on competitive activities during and after the agreement term

3. Training Requirements: Specific training obligations and requirements for the agent

4. Intellectual Property: Rights and restrictions regarding use of intellectual property

5. Data Protection: Compliance with GDPR and data protection requirements

6. Insurance: Required insurance coverage and minimum limits

Suggested Schedules

1. Commission Schedule: Detailed breakdown of commission calculations and examples

2. Territory Description: Detailed description of geographical territory if applicable

3. Product Schedule: List of products/services covered by the agreement

4. KPI Schedule: Performance indicators and targets for the agent

5. Approved Sub-agents: List of pre-approved sub-agents if permitted under the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agent
Agreement
Business Day
Commencement Date
Commission
Confidential Information
Customer
Intellectual Property Rights
Principal
Products
Services
Term
Territory
Trademark
Working Hours
Net Sales
Order
Payment Terms
Performance Targets
Quarter
Reporting Period
Sales Target
Termination Date
Trade Secrets
Valid Order
Commission Period
Competing Business
Contract Year
Force Majeure Event
Group Company
Marketing Materials
Minimum Performance Requirements
Non-Compete Period
Price List
Restricted Period
Clauses
Appointment and Authority
Scope of Agency
Territory
Duration
Agent's Duties
Principal's Duties
Commission
Payment Terms
Performance Requirements
Reporting Obligations
Confidentiality
Non-Competition
Non-Solicitation
Intellectual Property
Data Protection
Representation and Warranties
Indemnification
Insurance
Termination
Post-Termination Obligations
Force Majeure
Assignment
Notices
Entire Agreement
Severability
Waiver
Variation
Third Party Rights
Governing Law
Dispute Resolution
Marketing and Promotion
Record Keeping
Compliance with Laws
Relationship of Parties
Sub-Contracting
Industries

Commercial Agents Regulations 1993: Key legislation governing relationships between commercial agents and principals in the UK, implementing EU Directive 86/653/EEC

Agency Workers Regulations 2010: Regulations defining rights of agency workers, important for distinguishing independent agents from agency workers

Competition Act 1998: Legislation governing anti-competitive behavior and agreements between businesses

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce terms of a contract

Employment Rights Act 1996: Key employment legislation to consider for ensuring clear distinction between employment and independent agency

Equality Act 2010: Anti-discrimination legislation that may impact agent-principal relationships

UK GDPR: Data protection regulation governing how personal data must be handled and processed

Data Protection Act 2018: UK's implementation of data protection requirements, working alongside UK GDPR

Bribery Act 2010: Anti-corruption legislation affecting commercial relationships and business practices

Money Laundering Regulations 2017: Regulations concerning prevention of money laundering and terrorist financing

Consumer Rights Act 2015: Legislation protecting consumer rights, relevant if agent deals with consumers

Law of Agency: Common law principles governing the creation and operation of agency relationships

Contract Law Principles: Fundamental common law principles governing formation and enforcement of contracts

Fiduciary Duties: Common law principles regarding duties of trust and loyalty in agency relationships

Financial Services and Markets Act 2000: Regulatory framework for financial services industry, relevant if agent operates in financial sector

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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