While the use of agency contracts may have more advantages than disadvantages, it nevertheless involves risks. Liability is the obvious risk, like most other types of agreements. For example, you are the sponsor and your agent has signed a contract on your behalf without you being able to read the terms of the contract. You are automatically responsible for the provisions signed by your agent. And in case your agent commits an illegal act, you will commit the same act as the sponsor, since your agent represents you. For this reason, it is important that you put in place clear and appropriate conditions that protect your interests as principals in the event of serious misconduct on the part of your agent. One thing you could do is make it clear that you are limiting your commitments if your agent has committed an act that is not expressly mentioned in the agreement. This Agreement shall be governed by and construed in accordance with the laws of [insert name of country] without the rules of voting rights or conflict of laws taking effect. The parties agree with the [exclusive” or ”non-exclusive” jurisdiction and jurisdiction before the courts of [insert name of courts] in the city [insert name of city]. Before you start drafting your agency contract, you must first identify your goals. By deciding on the goals you want to achieve, you can easily create an agency contract specifically aimed at achieving such goals. You can also avoid many setbacks as best you can.
While it should contain the terms that you and your agent have already agreed, it should also mention the goals you want to take away from this agreement. You can define them in the terms of the agreement. CONSIDERING that the company wishes to appoint an agent as a representative to market and promote these products exclusively in these countries; This agreement represents the entire agreement of the parties on this subject and replaces all previous agreements and instruments in this field. . . .