Okuzeka
Contract & Commercial Law vocabulary · Commercial Agreements

Agency agreement

Meaning in contract & commercial law, with examples

nounCommon term

In contract & commercial law, agency agreement means: A contract under which an agent finds customers or makes sales on behalf of a principal, usually for a commission, without buying the goods itself.

In Turkish: acentelik sözleşmesi, temsilcilik sözleşmesi

How it is used

The two parties are the principal and the agent. In the EU and the UK, commercial agents are specially protected, including a right to compensation or an indemnity when the agreement ends. Turkish law gives agents a similar right, the denkleştirme tazminatı.

Example sentences

  1. Under the agency agreement, the agent earns 6% commission on every order it brings in.

  2. The agency agreement does not allow the agent to sign contracts in our name.

Common collocations

  • commercial agency agreement
  • exclusive agency agreement
  • agent's commission
  • principal and agent
  • distribution agreementA contract under which a distributor buys products from a manufacturer and resells them in its own name in an agreed territory.
  • franchiseA business arrangement in which the owner of a brand and business system lets others run outlets using its name, methods and support in return for fees.
  • supplierA business that provides goods or services to another business, usually under a supply agreement or individual purchase orders.
  • terminateTo end a contract officially, for example because the other party has breached it, or by giving the notice that the contract allows.

More terms: Commercial Agreements

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level:

This page explains English vocabulary for learners. It is not legal advice.