agency agreement
A contract that sets out the terms under which one party acts as agent for another, including authority, payment and duration.
Definition
An agency agreement records the relationship between a principal and an agent. A good one states what the agent may do, which decisions need approval, how and when the agent is paid, how long the arrangement lasts, how it can end, and who owns the work produced. In the marketing world the same ideas often sit inside a master services agreement and individual statements of work. Clear terms about authority, spending limits, confidentiality and termination prevent most disputes. Have a qualified lawyer review any agreement before signing.
In a sentence
The agency agreement capped what the agency could commit without written approval.
Both sides signed the agency agreement before work began.
