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The Principal Agency Agreement is a fundamental commercial contract used when a company (principal) wishes to engage an independent agent to promote and sell its products or services in a specified territory under Danish law. This document is essential for businesses expanding their market reach through agents rather than establishing their own sales force or subsidiaries. The agreement must comply with the Danish Commercial Agents Act and related EU regulations, which provide significant protections for commercial agents. It covers crucial aspects such as territory rights, exclusivity, commission calculations, performance requirements, and termination provisions. Particular attention must be paid to mandatory provisions under Danish law regarding agent compensation and notice periods. The agreement is commonly used in various industries where manufacturers, suppliers, or service providers need local representation in specific markets without establishing their own presence.

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

2. Background: Context of the agreement, brief description of the parties' businesses, and their intentions in entering into the agency relationship

3. Definitions: Definitions of key terms used throughout the agreement for clarity and consistent interpretation

4. Appointment and Scope: Formal appointment of the agent, specification of territory, products/services covered, and whether the appointment is exclusive or non-exclusive

5. Term: Duration of the agreement, including start date and whether fixed-term or indefinite

6. Agent's Rights and Obligations: Comprehensive listing of agent's duties, responsibilities, and rights including promotion, customer service, reporting requirements

7. Principal's Rights and Obligations: Principal's commitments, including providing information, materials, and support to the agent

8. Commission and Payment Terms: Structure of commission, calculation method, payment terms, and conditions for commission entitlement

9. Intellectual Property Rights: Usage rights and restrictions regarding trademarks, logos, and other IP owned by the principal

10. Confidentiality: Obligations regarding confidential information handling and protection

11. Data Protection: GDPR compliance measures and data handling responsibilities

12. Non-Competition and Non-Solicitation: Restrictions during and after the agreement term

13. Termination: Grounds for termination, notice periods, and consequences of termination

14. Post-Termination: Obligations and rights after termination, including compensation and indemnity

15. General Provisions: Standard clauses including governing law, jurisdiction, entire agreement, and amendments

16. Signatures: Execution blocks for both parties