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International Agency Agreement Template for Germany

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Key Requirements PROMPT example:

International Agency Agreement

"I need an International Agency Agreement under German law for appointing an exclusive agent to sell our industrial machinery in the Benelux countries, with a commission structure of 10% on net sales and minimum performance requirements of €2M annual sales starting March 2025."

Document background
The International Agency Agreement is essential for businesses looking to expand their market presence through local representatives in foreign territories while maintaining control under German law. This document type is particularly crucial when a company (principal) wishes to appoint a commercial agent to promote their products or services in specific geographical areas without establishing their own local entity. The agreement must comply with the German Commercial Code (HGB) and relevant EU regulations, particularly regarding agent protection provisions. It typically includes detailed sections on commission structures, territorial rights, performance expectations, and mandatory compensation rights. This document is commonly used in cross-border business relationships where the principal seeks professional representation in new markets while ensuring legal compliance with both German and international commercial laws.
Suggested Sections

1. Parties: Identification of the Principal and Agent with full legal names, registration details, and addresses

2. Background: Context of the agreement, brief description of the parties' businesses, and their intention to enter into an agency relationship

3. Definitions: Definitions of key terms used throughout the agreement, including Products, Territory, Customers, etc.

4. Appointment and Territory: Formal appointment of the agent, specification of territorial scope, and exclusivity status

5. Agent's Rights and Obligations: Detailed description of agent's duties, responsibilities, and rights in representing the principal

6. Principal's Rights and Obligations: Principal's commitments, support obligations, and information provision requirements

7. Commission Structure: Detailed commission calculations, payment terms, and conditions for commission entitlement

8. Reporting and Accounting: Requirements for sales reporting, documentation, and accounting procedures

9. Intellectual Property: Usage rights and restrictions regarding principal's trademarks, logos, and other IP

10. Confidentiality: Obligations regarding confidential information and trade secrets

11. Term and Termination: Duration of agreement, renewal terms, and termination provisions including notice periods

12. Post-Termination: Obligations and rights after termination, including compensation claims and handover requirements

13. Data Protection: GDPR compliance measures and data handling requirements

14. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction for disputes

Optional Sections

1. Non-Competition: Restrictions on agent's activities during and after the agreement term - optional but common in German agency agreements

2. Marketing and Promotion: Specific requirements for marketing activities and cost allocation - include if agent has marketing responsibilities

3. Training Requirements: Training obligations and procedures - include if specific product knowledge or certification is required

4. Minimum Performance Requirements: Sales targets and consequences of non-achievement - include if specific performance metrics are essential

5. Insurance: Insurance requirements and liability coverage - important for high-value products or regulated industries

6. Compliance with Local Laws: Specific compliance requirements - particularly relevant if territory spans multiple countries

7. Force Majeure: Provisions for extraordinary circumstances - increasingly important post-COVID

8. Bank Guarantee: Requirements for financial security - include if agent handles payments or requires significant principal investment

Suggested Schedules

1. Schedule 1: Products: Detailed list of products or services covered by the agency agreement

2. Schedule 2: Territory Definition: Detailed description of geographical territory including any excluded areas

3. Schedule 3: Commission Rates: Detailed commission structure, including any variations by product or customer type

4. Schedule 4: Reporting Templates: Standard forms for regular reporting and documentation requirements

5. Schedule 5: Trademark Usage Guidelines: Guidelines for use of principal's trademarks and branding

6. Appendix A: Key Performance Indicators: Detailed performance metrics and evaluation criteria

7. Appendix B: Technical Requirements: Any technical specifications or requirements for agent's operations

8. Appendix C: Compliance Procedures: Detailed compliance requirements and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions












































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Relevant Industries

Manufacturing

Industrial Equipment

Consumer Goods

Technology and Software

Pharmaceuticals

Automotive

Chemical Industry

Medical Devices

Fashion and Textiles

Construction Materials

Agricultural Products

Professional Services

Telecommunications

Renewable Energy

Relevant Teams

Legal

Sales

Business Development

International Operations

Commercial Operations

Compliance

Contract Administration

Finance

Export

Risk Management

Relevant Roles

Commercial Director

Sales Director

Business Development Manager

Legal Counsel

International Sales Manager

Contract Manager

Chief Commercial Officer

Export Manager

Regional Sales Director

Compliance Officer

General Counsel

Managing Director

Head of International Business

Chief Executive Officer

Sales Operations Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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