See Also: How to Select Your Commercial Insurance Broker Commercial Agent
Commercial agents are individuals, who may be part of a commercial agency, hired by a company to represent one or more principals within an organization. A commercial agent will seek out and acquire business on behalf of his principals and is generally compensated based on a percentage of the sales revenue. A commercial agents' commission is a predetermined amount defined in a commercial agency contract that is executed by both parties.
Commercial Agency Contract
A commercial agency contract is a written agreement that defines the relationship between a commercial agent and his principals. The commercial agency agreement will outline the obligations, interests and authority levels authorized to the commercial agent. Commercial agents may require a certain level of management by the principals, to ensure the principals best interests are represented in each transaction.
Commercial Agents Law
Commercial agents law protects commercial agents and the principals in the contractual relationship when there is a breach in the commercial agency agreement. For example, a commercial agents' breach can release the principal from obligations outlined in the commercial agency contract. The commercial agency agreement can be enforced in recognized law if contractual issues arise between the entities.