The Service Agency Agreement is essential for businesses operating in the United States that need to formalize relationships with external service providers or representatives. This document is particularly crucial when a company (principal) wishes to authorize another party (agent) to act on its behalf while maintaining control over the scope of authority. The agreement typically includes detailed provisions about service scope, compensation, territory restrictions, and compliance requirements. It's designed to protect both parties' interests while ensuring clarity in their business relationship and compliance with applicable U.S. federal and state laws.
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1. Parties: Identifies and defines the principal and agent parties to the agreement
2. Background/Recitals: Provides context and purpose of the agency relationship
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Scope: Defines the agent's appointment and scope of authority
5. Term and Termination: Duration of agreement and termination conditions
6. Compensation: Payment terms, commission structures, and expenses
7. Obligations and Duties: Responsibilities of both principal and agent
8. Governing Law: Specifies applicable jurisdiction and law
1. Non-Compete: Restrictions on competitive activities - used when protecting market position or sensitive information
2. Intellectual Property: IP ownership and usage rights - used when IP is created or shared during service provision
3. Insurance: Required insurance coverage - used when services involve significant risks or liabilities
4. Data Protection: Data handling and privacy requirements - used when personal or sensitive data is processed
1. Schedule of Services: Detailed description of services to be provided
2. Commission Schedule: Detailed breakdown of commission calculations and payment terms
3. Territory Schedule: Definition of geographical areas covered by the agreement
4. Performance Metrics: KPIs and performance evaluation criteria
Relevant legal definitions
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