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Agency Agreement Template for Switzerland

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Key Requirements PROMPT example:

Agency Agreement

I need an agency agreement to appoint a representative to negotiate and conclude contracts on behalf of my company in the Swiss market. The agreement should include a clear scope of authority, commission structure, confidentiality obligations, and a termination clause with a 30-day notice period.

What is an Agency Agreement?

An Agency Agreement lets you legally authorize someone else to act on your behalf in Switzerland. When you sign one, you (the principal) give another party (the agent) the power to handle specific business matters, make decisions, or complete transactions for you. These agreements are common in real estate, trading, and international business.

Under Swiss law, these agreements must clearly outline the agent's scope of authority, compensation terms, and duration. The Swiss Code of Obligations sets strict rules about the agent's duties, including acting in good faith and providing regular updates to the principal. You can end an agency relationship anytime, but both parties need to follow proper termination procedures.

When should you use an Agency Agreement?

Use an Agency Agreement when you need someone to legally represent your interests in Switzerland but can't handle matters personally. This comes up frequently when expanding into new markets, managing real estate from abroad, or conducting cross-border trade. Swiss businesses often need these agreements to appoint local representatives who can sign documents, negotiate deals, or manage operations.

The agreement becomes especially important when dealing with time-sensitive opportunities, complex regulatory requirements, or situations requiring specialized local knowledge. For example, foreign companies entering the Swiss market typically sign Agency Agreements with local partners to handle customs clearance, regulatory compliance, and business development activities.

What are the different types of Agency Agreement?

Who should typically use an Agency Agreement?

  • Principals: Companies or individuals who need representation in Switzerland, including foreign businesses entering the market or local firms expanding operations
  • Agents: Swiss-based representatives who handle business matters, including sales professionals, property managers, or local business consultants
  • Legal Advisors: Swiss attorneys who draft and review Agency Agreements to ensure compliance with local regulations and protect both parties' interests
  • Industry Regulators: Government bodies that oversee specific sectors where agents operate, particularly in financial services and real estate
  • Business Partners: Third parties who interact with agents, including customers, suppliers, and other stakeholders in the Swiss market

How do you write an Agency Agreement?

  • Party Details: Gather full legal names, addresses, and contact information for both principal and agent, including Swiss registration numbers if applicable
  • Scope Definition: List specific powers being granted, territories covered, and any limitations on the agent's authority
  • Compensation Terms: Document fee structures, commission rates, payment schedules, and expense reimbursement policies
  • Duration Planning: Decide on agreement length, renewal terms, and termination conditions that align with Swiss law
  • Compliance Check: Our platform ensures your Agency Agreement includes all mandatory Swiss legal requirements while using clear, enforceable language
  • Signature Requirements: Prepare proper authentication methods accepted under Swiss law, including digital signatures if applicable

What should be included in an Agency Agreement?

  • Party Identification: Complete details of principal and agent, including Swiss business registration numbers and addresses
  • Scope of Authority: Clear description of agent's powers, permitted activities, and any limitations under Swiss law
  • Compensation Structure: Detailed commission rates, payment terms, and expense reimbursement policies
  • Duration and Termination: Agreement period, renewal options, and conditions for ending the relationship
  • Confidentiality Terms: Rules for handling sensitive information, aligned with Swiss data protection laws
  • Governing Law: Explicit reference to Swiss law and jurisdiction for dispute resolution
  • Liability Provisions: Clear outline of responsibilities and limitations under the Swiss Code of Obligations

What's the difference between an Agency Agreement and a Broker Agreement?

A key distinction exists between an Agency Agreement and a Broker Agreement in Swiss business law. While both involve intermediaries, they serve different purposes and carry distinct legal implications.

  • Scope of Authority: Agency Agreements grant ongoing authority to represent and make decisions on behalf of the principal, while Broker Agreements typically limit authority to specific transactions or deals
  • Duration: Agency relationships tend to be long-term arrangements with continuous representation, whereas broker relationships usually end once the specific transaction completes
  • Legal Obligations: Agents have fiduciary duties and must act in the principal's best interests under Swiss law, while brokers mainly have obligations related to the specific transaction
  • Compensation Structure: Agents often receive regular payments or commissions for ongoing work, but brokers typically earn one-time fees per successful transaction
  • Liability Exposure: Agents can legally bind their principals in dealings with third parties, while brokers generally cannot create binding obligations

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