A principal agent agreement, also known as a PA agreement, is a legal contract between two parties – a principal and an agent. The principal is a person or organization that appoints another party, known as the agent, to act on their behalf in certain matters. In this article, we will provide you with a sample principal agent agreement and highlight its essential components.
Sample principal agent agreement:
THIS AGREEMENT made on 2024 between [Principal Name] (hereinafter referred to as “Principal”), and [Agent Name] (hereinafter referred to as “Agent”).
Whereas the Principal is desirous of appointing the Agent, and the Agent is desirous of acting as an agent of the Principal, for the purposes and on the terms and conditions set forth in this Agreement.
Now, therefore, the parties agree as follows:
1. Appointment: The Principal hereby appoints the Agent as its exclusive agent to provide the following services:
[List the services that the Agent will provide on behalf of the Principal]2. Term: This Agreement shall begin on [start date] and shall continue in effect until terminated by either party giving [Number of days/weeks/months] prior written notice.
3. Compensation: The compensation that the Agent shall receive for performing the services shall be [Specify the payment structure]. The Agent shall be responsible for all taxes arising out of the compensation paid to them.
4. Confidentiality: The Agent acknowledges that they may receive confidential information about the Principal`s business. The Agent agrees that they shall not disclose this information to any third party.
5. Termination: The Principal may terminate this agreement if the Agent breaches any of their obligations under this agreement. Similarly, the Agent may terminate this agreement if the Principal breaches any of their obligations under this agreement.
6. Indemnification: The Agent shall indemnify and hold the Principal harmless from any and all claims, damages, liabilities, costs and expenses arising out of the Agent`s performance of its obligations under this agreement.
7. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of [State/Province/Country].
8. Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements between them, whether written or oral.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.
Principal: [Principal Name]
Agent: [Agent Name]
In conclusion, a principal agent agreement is a necessity for businesses that require a third party to act on their behalf. The agreement must outline the roles and responsibilities of both parties, including confidentiality, compensation, termination, and indemnification. A well-constructed agreement will provide clarity and security for both the principal and the agent.