Basic Agency Agreement

The Basic Agency Agreement template contains the following clauses, briefly described on this page. Each clause in the template has appropriate legal language with endnotes for the guidance of managers and their legal advisors.

Recitals - Why are recitals useful?

Appointment Clause - What is the scope of the Agency or what activities does it cover?

Best Efforts Clause - What Obligations should my Agent assume? What is the nature of a "best efforts" obligation?

Cargo under Control of Shipper etc. - What are the good faith obligations of a principal? How are they affected by this clause?

Rates Clause - How effective is a clause requiring that a party secure the best rates for the mutual traffic?

Profit Sharing Clause - How should profits be split? What expenses should be deducted from revenues to calculate profit?

Documentation Clause - If the forwarder carries on business in the UNITED STATES, is there a need for tariff filing, and should the service be governed by its tariff?

Handling Instructions - What is meant by the words "case by case basis"?

Currency Clause - What is the currency in which parties account to each other? In countries where there are currency restrictions, care must taken to see clause is legal.

Procedures Clause - An essential clause: release of cargo is always a problem, and must be addressed specifically.

Indemnification Clause - Law suits may be brought against either party based on a fault of the other. What protection is appropriate for the innocent party? Consider the scope of this clause?

Revenue and Expenses Clause - Can an agent use revenue to cover expenses? Consider what the situation will be in the representative becomes insolvent or bankrupt?

Accounting Clause - The accounting clause must be clear and carefully followed.

Termination Clause - What is an appropriate time frame for an agency? What should be grounds for termination? How should notice be given?

Claims Clause - How should the parties handle claims?

Records Clause - How do you assure access to your representative's records?

Remittance Clause - Clause covers methods of making Payments: what are the alternatives?

Choice of Law and Jurisdiction Clause - An important clause, as certain legal systems may impose legal consequences despite what the parties have agreed on. This agreement has been drafted to be consistent with principles of the common law as applied in Canada.

Arbitrration and Mediation - How can litigation be avoided? Review the facilities offered by Forwarderlaw

Independent Businesses Clause - Is a wider provision required?

Miscellaneous Provisions - What other clauses are standard to agency agreements?

You pay $100 US for the template agreement sent to you by email. To Order click on the following email link and enter "Basic Agency Agreement" in the subject matter of the email.
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Please note that the Template must be reviewed by a lawyer who is familiar with the law of the legal system that the parties choose to govern their agreement or to which they are subject.
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