Principal Agency Agreement Template for Austria

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Key Requirements PROMPT example:

Principal Agency Agreement

"I need a Principal Agency Agreement for appointing an exclusive commercial agent to represent our software products in Austria and Germany, with specific provisions for SaaS licensing and a commission structure based on subscription revenues, starting March 2025."

Document background
The Principal Agency Agreement is essential for businesses operating through commercial agents in Austria or choosing Austrian law as their governing law. This document type is particularly relevant when a company (the principal) wishes to expand its market presence through independent agents rather than employees. The agreement must comply with the Austrian Commercial Agents Act (HVertrG) and related EU regulations, which provide significant protective measures for commercial agents. The document typically includes detailed provisions on territory, commission structures, performance expectations, and termination rights. It's crucial for businesses to understand that Austrian law provides strong protective measures for commercial agents, including mandatory compensation upon termination (Ausgleichsanspruch), which must be reflected in the agreement terms.
Suggested Sections

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

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Scope: Terms of agent's appointment, territory, and products/services covered

5. Agent's Rights and Obligations: Detailed responsibilities, reporting requirements, and performance standards

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

7. Commission Structure: Calculation method, payment terms, and conditions for commission earnings

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

9. Post-Termination Provisions: Obligations after termination, including compensation claims and handover requirements

10. Confidentiality: Protection of confidential information and trade secrets

11. Intellectual Property: Usage rights and restrictions regarding trademarks and other IP

12. Data Protection: GDPR compliance and data handling requirements

13. Governing Law and Jurisdiction: Confirmation of Austrian law application and dispute resolution forum

14. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

Optional Sections

1. Non-Compete Clause: Restrictions on competitive activities during and after the agreement (optional but common for high-value relationships)

2. Minimum Performance Requirements: Specific sales targets or performance metrics (used when performance benchmarks are crucial)

3. Sub-Agents: Terms for appointment and management of sub-agents (if sub-agents are permitted)

4. Insurance Requirements: Specific insurance obligations (relevant for high-risk products or services)

5. Marketing and Promotion: Specific requirements for marketing activities (relevant for consumer-facing agencies)

6. Stock Handling: Terms for handling inventory (relevant if agent handles physical products)

7. Training Requirements: Specific training obligations (relevant for technical products or regulated industries)

Suggested Schedules

1. Schedule 1 - Products/Services: Detailed list of products or services covered by the agency

2. Schedule 2 - Territory: Detailed description of geographical territory and any exclusions

3. Schedule 3 - Commission Rates: Detailed commission structure, calculations, and examples

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

5. Schedule 5 - Operating Procedures: Detailed procedures for order processing, customer service, etc.

6. Appendix A - Brand Guidelines: Guidelines for use of Principal's branding and marketing materials

7. Appendix B - Compliance Requirements: Specific regulatory or industry compliance requirements

Authors

Alex Denne

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

Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Retail

Technology

Financial Services

Industrial Products

Consumer Goods

Professional Services

Software and IT

Pharmaceuticals

Construction

Real Estate

Automotive

Telecommunications

Relevant Teams

Legal

Sales

Commercial

Business Development

Compliance

Finance

Operations

International Business

Contract Administration

Relevant Roles

Commercial Director

Sales Director

Business Development Manager

Legal Counsel

Contracts Manager

Chief Commercial Officer

Sales Operations Manager

Channel Manager

Distribution Manager

Chief Executive Officer

Legal Director

Compliance Officer

Regional Sales 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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