The International Agency Agreement regulates the relationship between companies and commercial agents in charge of promoting the sale of products and services if the parties are from different countries (eg Italian company and French agent).
The international agency agreement allows access to new markets by turning to a subject external to the company. As a rule, the agent does not receive a fixed remuneration but is paid with commissions on the contracts actually concluded. Therefore, relying on an agent allows you to reduce the costs of developing a new market. In addition, a local sales agent has a better understanding of potential customers and competitors.
With the international agency contract, it is possible to regulate many aspects of the relationship. For example, it is possible to prohibit the agent from taking on assignments with other companies (single-firm agent) or to assign the agent the exclusive right on a specific area (eg the entire foreign country or a region thereof).
Italian law can also be applied to an international agent. In particular, in the European Union the agency rules have been standardized. However, it is possible that in some respects (e.g. indemnity in the event of termination of the relationship) local regulations varying from state to state apply. In addition, you may enter into the contract with the trade agent in English (agency agreement) to facilitate trading.
When using the international agency agreement
The international agency agreement is used when an Italian company instructs a foreign agent to promote the sale of its products or services abroad. It is also possible to use this contract if a foreign company hires an Italian agent.
The agent can be both a natural person and a company (eg a local agency with its own employees and collaborators). With the international agency contract, it is possible to promote the conclusion of any type of contract with the exception of a work contract (eg the agent can promote the sale of industrial plants or digital marketing services).
The agency contract provides for a real obligation on the part of the agent to promote the sale of the products (or services) of the principal company. Particularly:
- if it is an occasional activity, without any obligation for the agent, the contract for the business finder must be used
- if the activity is only in consultancy for sale abroad (eg. export advice), without the obligation to promote the undertaking’s affairs, you should use the consulting contract
Finally, if the contract provides for the purchase of the goods by the agent for subsequent resale, it is not an agency mandate. In these cases, you will have to use a different agreement such as the distribution agreement.
What does the international agency agreement model contain?
Our international agency agreement meets all legal requirements. The main clauses included concern:
- Purpose: the products or services that the agent undertakes to promote or sell
- Zone: the territory within which the agent promotes the business of the principal company (e.g. the entire foreign state or a part or region of it)
- Exclusive: to prohibit the agent from selling products (or services) of competitors in the assigned area
- Executive customers: to reserve for the company some customers with whom it will deal directly
- Single-mandate / Multi-mandate: to choose whether the agent will be able to take on multiple assignments or only the one with the company
- Commissions: to establish the commission (e.g. a percentage of the deal) and specify the time of payment to the agent (e.g. the conclusion of the deal or the collection of the price paid by the customer)
- Duration: the agency mandate can be for a term (e.g. for one year, two years, etc.) or for an indefinite period, i.e. without a deadline
- Expense reimbursement: to choose whether to reimburse some expenses incurred by the agent
- Advance commission: to advance part of the commissions to the agent for a limited period of time, at the beginning of the activity
- Non-competition agreement: to prohibit the agent from carrying out competing activities after the end of the agency mandate
- English language: if the agent or company is foreign, it may be useful to draft the contract in English to simplify the negotiation
Once you have downloaded your international agency agreement, we will guide you step by step to complete the necessary subsequent obligations.
Information you need
To complete the contract, all the details of the agent and the principal company are required. If you don’t know where to find this information we will help you during the guided interview.
Remember that our interview does not generate a simple facsimile of an international agency contract. Based on your answers, the system automatically draws up a customized contract model for your exact needs, guaranteeing its legal correctness.
The document can be modified in all its parts without time limits. Don’t worry so if you don’t have all the information available during the interview, you can always enter it later.
- International agency agreement
- Agency agreement in English
- Agency agreement, Agency Contract, Agent Agreement, Agent Contract
- Contract for commercial agents
- Mandate of agency or representation
- Commercial representation mandate
- Agency contract
Other useful templates and facsimiles
- Business Agent Agreement: to allow a partner to occasionally promote a company’s products or services
- Consultancy Agreement: to regulate the relationship with a consultant to develop sales in a specific territory
- Distribution Agreement: to entrust a person with the purchase of goods or services and then revise them to third parties in a specific territory
- Franchising contract: to create a network of affiliated points of sale and spread your products
- Employment Contract for Employees: to hire an employee, a worker or a manager, even with a commission on sales