The Commercial Agency Agreement serves as a crucial document for businesses looking to expand their market presence through third-party representatives. This agreement, commonly used in the United States, defines the scope of the agent's authority, territorial rights, commission structure, and performance expectations. It protects both parties by clearly outlining their respective rights and obligations, while ensuring compliance with relevant state and federal regulations. The agreement is particularly important in establishing clear boundaries between independent contractor relationships and employment relationships, helping avoid potential legal complications.

1. Parties: Identification and details of the Principal and Agent

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

3. Definitions: Key terms used throughout the agreement

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

5. Agent's Rights and Obligations: Core responsibilities and authorized activities

6. Principal's Rights and Obligations: Principal's commitments and responsibilities

7. Commission Structure: Payment terms, rates, and calculation methods

8. Term and Termination: Duration and termination provisions

9. Governing Law: Applicable jurisdiction and dispute resolution