Appoint agents with clear terms for commission, territory, obligations, and termination. AI customises every clause with your business details.
Scope of agent's authority, exclusive or non-exclusive appointment, and territory or market definition.
Commission rates, when commission is earned, trailing commissions, and payment terms.
Optional minimum performance obligations, reporting requirements, and review periods.
Fiduciary duties, conflict of interest provisions, record-keeping, and duty to follow instructions.
Support, materials, training, and timely payment of earned commission.
Agreement duration, renewal, termination for convenience and cause, and post-termination obligations.
Grant agents the authority to sell your products in specific territories or markets.
Formalise commission-based sales arrangements with clear performance expectations.
Appoint real estate agents for project marketing with defined commission and exclusivity terms.
Engage overseas agents to represent your business in international markets.
Select the agency agreement from our library.
Gemini AI fills in principal and agent details, commission, territory, and terms. All placeholders removed.
Review the agreement and send to the agent. They sign electronically from any device.
An agency agreement appoints one party (the agent) to act on behalf of another (the principal) when dealing with third parties. The agent can negotiate deals, sell products, or represent the principal in a defined market, and the principal becomes bound by the agent's authorised actions. In Australia, the relationship rests largely on common law agency principles, with some industries (such as real estate) layering state licensing rules on top. A written agreement is what turns a loose representation arrangement into a clear, enforceable commercial relationship.
Use an agency agreement whenever you authorise someone to act or sell on your behalf. Manufacturers appointing distributors, service companies engaging commission-based sales agents, property developers retaining selling agents, and importers or exporters using overseas representatives all need one. It is equally important from the agent's side, because it confirms the commission they will earn and the support the principal must provide.
A strong agency agreement defines the scope of the agent's authority and whether the appointment is exclusive, sets the territory or market, and details the commission: the rate, when it is earned, and how it is handled on cancelled deals. It should record the agent's fiduciary duties, the principal's obligations to provide materials and pay on time, any performance targets and reporting requirements, confidentiality, and the term with clear termination rights. Defining the limits of the agent's authority is particularly important, because the principal can be bound by acts within that authority.
An agency agreement is a standard contract, not a deed, so it needs no witness and no special execution wording. Each party signs, and electronic signatures are valid under the Electronic Transactions Act 1999 (Cth), making a digitally signed agreement fully enforceable with a clear audit trail. Where the agency involves a regulated activity such as real estate sales, remember that separate state licensing, trust account, and disclosure obligations apply to the agent over and above the contract.
Frequent errors include leaving the scope of authority vague (so the principal is unsure what the agent can bind them to), failing to specify when commission is earned, omitting the territory or exclusivity terms, and drafting post-termination restraints that are far too broad to enforce. Principals also sometimes forget to address what happens to deals still in progress when the agreement ends. Clear authority limits, precise commission triggers, and reasonable restraints keep the relationship clean.
This page is general information about agency agreements in Australia and is not legal advice. Regulated industries carry additional licensing obligations. For significant or regulated arrangements, seek advice from a qualified Australian lawyer.
An agency agreement is a contract where a principal authorises an agent to act on the principal's behalf when dealing with third parties. The agent might negotiate or sign contracts, sell products, or represent the principal in a market or territory. In Australia, agency relationships are governed mainly by common law principles, and certain regulated industries (such as real estate) have their own state licensing legislation on top.
Under an exclusive agency, the principal appoints only that agent for the defined products or territory and cannot use others (and sometimes cannot sell directly). A non-exclusive agency lets the principal appoint multiple agents or sell directly. Exclusivity usually comes with higher performance expectations. The agreement should state clearly which model applies and define the territory or market.
An agent typically owes fiduciary duties: to act in the principal's best interests, avoid conflicts of interest, not make secret profits, keep proper accounts, follow lawful instructions, and exercise reasonable care and skill. Spelling these duties out in the agreement makes them easier to enforce and sets clear expectations.
Commission can be a percentage of sales, a fixed fee per transaction, a retainer plus performance bonus, or a blend. The agreement should state the rate, when commission is earned (on signing the contract or on settlement), whether trailing commissions apply, and how commission is treated on partial, cancelled, or refunded deals to avoid later disputes.
An agency agreement is an ordinary contract, so it does not need a witness and is not executed as a deed. Each party signs, and electronic signatures are valid under the Electronic Transactions Act 1999 (Cth). Note that some regulated agency activities (for example, real estate) carry separate state licensing and disclosure obligations beyond the contract itself.
Yes. Well-drafted agreements allow termination for convenience on notice and termination for cause (such as breach or insolvency). They also set out the consequences: payment of accrued commission, return of materials and confidential information, and any agreed post-termination non-compete or non-solicitation restraints, which must be reasonable to be enforceable.