South Africa
Agency Agreement
R749
Create an agency agreement appointing an agent to act for a principal, with clear authority, duties, commission, reporting, confidentiality, limits of power, and termination terms.
An Agency Agreement is used where one party appoints another to act on its behalf in relation to customers, contracts, sales, introductions, negotiations, procurement, marketing, property, services, or business opportunities. It should clearly regulate the agent’s authority and whether the agent may legally bind the principal.
South African legal context (2026 checklist)
The agreement should distinguish between an agent who may conclude contracts on behalf of the principal and a representative who may only introduce or negotiate opportunities. If authority is unclear, disputes may arise about liability to third parties. Commission triggers should also be clearly defined to avoid disputes over whether the agent earned payment.
- South African common law of agency
- South African common law of contract
- Consumer Protection Act 68 of 2008, where consumer transactions are involved
- Property Practitioners Act 22 of 2019, where property-practitioner services are involved
- Financial Advisory and Intermediary Services Act 37 of 2002, where financial services are involved
- National Credit Act 34 of 2005, where credit intermediation is involved
- Competition Act 89 of 1998
- Protection of Personal Information Act 4 of 2013
- Electronic Communications and Transactions Act 25 of 2002
- Prescription Act 68 of 1969
Use this as a starting point only. Verify current gazetted amendments, tribunal rules, and SARS / DOL circulars that may apply to your matter.
Typical questions we'll walk you through
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Who is the principal?
Who is the agent?
What authority is being given to the agent?
What products, services, clients, transactions, or territory will the agent handle?
Can the agent bind the principal or only introduce opportunities?
Is the appointment exclusive or non-exclusive?
What commission, fee, or remuneration will the agent receive?
When is commission earned and paid?
Must the agent report deals, leads, expenses, or negotiations?
May the agent appoint sub-agents?
Must the agent avoid conflicts of interest?
How may the agreement be terminated?
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