Buying Agency Agreement

Buying Agency Agreement Template for Denmark

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Document background

The Buying Agency Agreement is essential for businesses seeking to establish formal procurement relationships in various markets. This document, governed by Danish law, is typically used when a company (principal) wants to engage a professional agent to identify suppliers, negotiate purchases, and manage procurement activities on their behalf. The agreement needs to comply with Danish Commercial Agents Act (Handelsagentloven) and related regulations, making it suitable for both domestic and international procurement arrangements. It includes detailed provisions about the agent's authority, territory, commission structure, performance expectations, and reporting requirements. This type of agreement is particularly valuable for companies expanding their supplier base or entering new markets where local expertise and presence are crucial for successful procurement operations.

Suggested Sections

1. Parties: Identification of the Principal and the Buying Agent, including full legal names, registration numbers, and addresses

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

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

4. Appointment and Scope: Terms of agent's appointment and scope of authority

5. Territory: Geographical area where the agent is authorized to act

6. Agent's Duties and Responsibilities: Detailed description of the agent's obligations and responsibilities

7. Principal's Duties and Responsibilities: Obligations of the principal including information provision and support

8. Commission and Payment Terms: Structure of commission, calculation method, payment terms and conditions

9. Reporting and Accounting: Requirements for financial reporting, record-keeping, and accounting

10. Term and Termination: Duration of agreement and circumstances for termination

11. Confidentiality: Protection of confidential information and trade secrets

12. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after the agreement

13. Governing Law and Jurisdiction: Specification of Danish law as governing law and jurisdiction for disputes

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

Optional Sections

1. Minimum Purchase Requirements: Used when the agreement includes minimum purchase obligations or targets

2. Exclusivity: When the agent is granted exclusive rights in the territory

3. Sub-Agents: Include when the agent is permitted to appoint sub-agents

4. Insurance: Required when specific insurance coverage is necessary for the agent

5. Intellectual Property: Include when the agent will be using the principal's trademarks or other IP

6. Force Majeure: Optional but recommended clause addressing unforeseen circumstances

7. Data Protection: Required when personal data processing is involved

8. Import/Export Compliance: Include for international trading activities

Suggested Schedules

1. Schedule 1 - Commission Structure: Detailed breakdown of commission rates and calculation methods

2. Schedule 2 - Product List: List of products or services covered by the agreement

3. Schedule 3 - Territory Definition: Detailed description or map of the territory

4. Schedule 4 - Reporting Templates: Standard formats for required reports and documentation

5. Schedule 5 - Service Level Agreement: Specific performance metrics and standards

6. Appendix A - Power of Attorney: If required, formal authorization of agent's powers

7. Appendix B - Compliance Requirements: Specific regulatory or compliance requirements applicable to the agency

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