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Professional Agency Service Agreement

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PROFESSIONAL AGENCY SERVICE AGREEMENT

This Professional Agency Service Agreement (the "Agreement") is made and entered into on this day of , by and between Agency Name: with principal place of business at (the "Agency"), and Client Name: with principal place of business at (the "Client").

RECITALS

WHEREAS, the Agency is engaged in the business of providing professional services including but not limited to: ; and

WHEREAS, the Client desires to retain the Agency to provide professional agency services as set forth in this Agreement and the Agency desires to provide such services under the terms and conditions contained herein; and

WHEREAS, the parties intend by this Agreement to define their respective rights and obligations with respect to the performance of such services.

NOW, THEREFORE

In consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. ENGAGEMENT AND SCOPE OF SERVICES

1.1 Engagement. The Client hereby engages the Agency, and the Agency accepts such engagement, to provide the services described in this Section and any attachments (the "Services"). The Services to be provided by the Agency are set forth in the Scope of Services below and may be supplemented or modified by written statement of work signed by both parties.

2. TERM; TERMINATION

2.1 Term. The term of this Agreement shall commence on day of , and shall continue until day of , unless earlier terminated in accordance with this Agreement.

2.2 Termination for Cause. Either party may terminate this Agreement for material breach by the other party if the breaching party fails to cure such breach within thirty (30) days after receipt of written notice specifying the breach.

2.3 Effect of Termination. Upon termination, the Agency shall deliver all completed work and all work in progress to the Client and shall be entitled to payment for Services performed and reimbursable expenses incurred through the effective date of termination.

3. COMPENSATION; PAYMENT

All payments shall be due within the number of days set forth in the payment terms following the date of invoice. Late payments shall accrue interest at the lesser of 1.5% per month or the maximum rate permitted by applicable law.

4. INDEPENDENT CONTRACTOR; AUTHORITY

The Agency shall perform the Services as an independent contractor. Nothing in this Agreement shall be construed to create an employer-employee relationship, joint venture, partnership, or agency for purposes of binding either party beyond the express terms of this Agreement. The Agency shall not have authority to enter into contracts or incur obligations on behalf of the Client except as expressly authorized in writing.

5. CONFIDENTIALITY

5.1 Definition. "Confidential Information" means non-public information disclosed by a party that is designated confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure.

5.2 Obligations. Each party shall keep Confidential Information of the other party strictly confidential and shall not use or disclose such information except as necessary to perform its obligations under this Agreement or as required by law. The obligations of confidentiality shall survive termination of this Agreement for a period of years.

6. INTELLECTUAL PROPERTY; WORK PRODUCT

6.1 Ownership. Except as otherwise provided in this Agreement, the Agency hereby assigns and shall assign to the Client all right, title and interest in and to the deliverables and work product created specifically for the Client under this Agreement (the "Work Product") upon full payment of all amounts due for such item(s). The Agency retains ownership of its background intellectual property and tools developed independently of the Services.

7. REPRESENTATIONS AND WARRANTIES

Each party represents and warrants that it has full corporate power and authority to enter into this Agreement and to perform its obligations hereunder. The Agency represents that the Services will be performed in a professional and workmanlike manner consistent with industry standards.

8. INDEMNIFICATION

The Agency shall indemnify, defend and hold harmless the Client from and against any third-party claims directly arising from the Agency's breach of this Agreement, negligence, or willful misconduct. The Client shall indemnify, defend and hold harmless the Agency from and against any third-party claims directly arising from the Client's breach of this Agreement or its use of the Work Product in combination with materials not furnished by the Agency.

9. LIMITATION OF LIABILITY

Except for liability resulting from gross negligence, willful misconduct or a party's indemnification obligations, neither party shall be liable for consequential, incidental, special or punitive damages. The aggregate liability of either party for any claim arising out of or relating to this Agreement shall not exceed the total fees paid by the Client to the Agency under this Agreement in the twelve (12) months preceding the event giving rise to the claim or , whichever is greater.

10. INSURANCE

The Agency shall maintain at its expense insurance customary for the industry, including general commercial liability and professional liability coverage in amounts sufficient to cover its obligations under this Agreement. Upon request, the Agency shall provide evidence of insurance to the Client.

11. NON-SOLICITATION

During the term of this Agreement and for a period of following termination, neither party shall directly solicit for hire the other party's employees who were materially involved in the provision of Services without the prior written consent of the other party.

12. NOTICES

All notices, demands, or communications required or permitted under this Agreement shall be in writing and shall be delivered to the parties at their respective addresses set forth below or to such other address as either party may designate by notice to the other in accordance with this Section.

13. MISCELLANEOUS

13.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of law principles.

13.2 Entire Agreement. This Agreement, together with any statements of work and attachments executed by the parties, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral.

13.3 Severability. If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

13.4 Amendment and Waiver. No amendment, modification or waiver of any provision of this Agreement shall be effective unless in writing and signed by both parties. The failure of either party to enforce any provision shall not constitute a waiver of that provision or any other provision.

13.5 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Signatures delivered by electronic transmission shall be effective as originals.

AUTHORITY AND ACKNOWLEDGEMENT

Each person signing below represents and warrants that they are authorized to execute this Agreement on behalf of the party for whom they sign, and that by signing they bind that party to the terms and conditions set forth herein.

Agency - Printed Name:

By:

Date:

Client - Printed Name:

By:

Date:

Enter text✕

What the Professional Agency Service Agreement Is

A Professional Agency Service Agreement is a written contract that sets out the relationship between a principal (client) and an agency engaged to provide professional services on the client's behalf. It defines the scope of work, deliverables, term, compensation, confidentiality, intellectual property ownership, termination rights, and dispute resolution procedures, and may include reporting, performance metrics, and insurance requirements. Parties use this agreement to clarify responsibilities and reduce risk in long-term or retainer arrangements where agencies act with delegated authority. It is commonly tailored to industry-specific compliance requirements.

Why a Clear Agreement Matters

A clear Professional Agency Service Agreement reduces ambiguity, limits liability, and defines payment and performance terms. It supports enforceability under federal e-signature laws such as the ESIGN Act (15 U.S.C. ch. 96) and applicable state UETA provisions.

Why a Clear Agreement Matters

Who Typically Completes This Agreement

Typical users include agencies, corporate clients, procurement teams, and legal counsel overseeing service engagements and delegated authorities.

  • Advertising and marketing agencies using retained terms or project-based scopes across multiple clients.
  • In-house procurement teams managing agency panels and approved vendor lists for consistent contracting.
  • Legal and compliance departments reviewing IP assignments, confidentiality clauses, and indemnities.

Use this agreement when assigning client-facing responsibilities, setting payment schedules, or establishing measurable performance and reporting obligations.

Key Sections to Include in the Agreement

Core sections clarify parties, services, fees, term, intellectual property, confidentiality, liability, and termination to reduce disputes and enable enforceable expectations.

Parties

Identify the client and agency with full legal names, business forms, and contact information; specify authorized representatives and the capacity in which they sign to ensure proper attribution and enforceability.

Scope

Define services, deliverables, milestones, performance metrics, reporting cadence, and any excluded services; attach exhibits or statements of work to prevent disputes over expectations and include acceptance criteria with change-control procedures.

Compensation

Specify fees, invoicing schedule, payment terms, expense reimbursement, late fees, and any retainers; tie payments to milestones where appropriate to align incentives and manage cash flow.

IP

Assign ownership of work product or specify license terms, include preexisting materials carve-outs, and state any royalty or usage limits for clarity on rights and post-termination use.

Confidentiality

Define confidential information, permitted disclosures, duration of confidentiality obligations, return or destruction procedures, and remedies for unauthorized disclosure, and specify data security standards and breach notification procedures.

Termination

State termination for cause and convenience, notice periods, obligations on termination, transition assistance, and survival of key clauses such as confidentiality, IP assignments, and indemnities.

Required Information and Essential Fields

Parties: Client and agency names
Scope: Clear service description
Compensation: Fees and payment terms
Term: Start and end dates
Signatures: Printed name, title, date
Exhibits: SOWs or schedules

Step-by-Step: Completing the Agreement

Follow these steps to complete and finalize a Professional Agency Service Agreement accurately and electronically.

  • 01
    Prepare draft: Collect parties' legal names and scope details
  • 02
    Review terms: Confirm IP, liability, and confidentiality provisions
  • 03
    Sign: All authorized signatories sign and date the final agreement
  • 04
    Distribute: Provide executed copies to all parties and retain originals

Where to Send and How to Route the Agreement

Routing and submission depend on internal approvals; channels include email, secure file transfer, e-signature platforms, and authorized mail.

  • Email: Send signed PDF with audit trail attached
  • E-sign: Use compliant platform capturing timestamps and IP
  • Portal: Upload to client portal for centralized access
  • Hard copy: Mail or deliver notarized originals if required

How to Configure an Online Workflow

Configure your online workflow before sending: routing order, authentication, templates, reminders, and storage location settings.

Workflow Field Configuration
Signature routing Sequential or parallel routing, set order per role
Authentication Email, SMS, or KBA options as needed
Templates Attach SOW templates and reusable clauses
Notifications Email reminders and escalation rules

Platform and Format Requirements

The agreement can be executed and distributed using standard e-signature platforms integrated with common enterprise systems.

  • Integrations: Salesforce, NetSuite, Microsoft 365
  • File formats: PDF and DOCX supported
  • Authentication: Email, SMS, or multi-factor

Timelines and Processing Expectations

Key dates for a Professional Agency Service Agreement include negotiation, execution, filing (if applicable), renewal, and review checkpoints.

Negotiation period:

Typically two to six weeks depending on complexity

Execution deadline:

Sign and date within agreed timeframe, often 30 days

Filing or registration:

File only if state requires contract recording

Renewal notice:

Send notice thirty to ninety days before automatic renewal

Internal review:

Schedule annual reviews for performance and compliance

Common Preparation Mistakes to Avoid

  • Using informal names or initials instead of full legal entity names can invalidate obligations and complicate enforcement, particularly when invoicing or pursuing damages.
  • Leaving scope vague or omitting acceptance criteria allows disputes over deliverables; attach a detailed statement of work showing measurable milestones and deliverables.
  • Failing to specify payment triggers, late fees, or expense reimbursement leads to billing disagreements and potential cash-flow problems for the agency.
  • Not aligning indemnity and insurance clauses with project risk may leave one party exposed to uninsured liabilities and costly litigation.

Penalties and Risks for Incorrect or Missing Information

Invalid signature: Risk of unenforceability
Late payment: Interest and collection costs
Data breach: Regulatory fines possible
Incorrect party: Contract voidability risk
Missing exhibits: Key obligations unclear
Tax reporting: 1099 penalties apply

eSignature Vendor Comparison for This Agreement

Comparison of common vendor features and starting prices. signNow appears first per platform data; feature availability varies by plan and by vendor.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial Yes, 7-day free trial Varies by plan Varies by plan Yes, limited trial Yes, limited trial
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Key Milestones in the Agreement Lifecycle

Milestones show the contract lifecycle from negotiation through execution, delivery of services, and post-termination obligations and recordkeeping.

01

Drafting

Negotiate and draft terms with counsel input

02

Execution

Obtain authorized signatures and verify dates

03

Performance

Agency delivers services per SOW and KPIs

04

Closeout

Complete final invoices, transition deliverables, archive executed agreement

Examples from Organizations Using the Agreement

Real-world examples illustrate how agencies and clients use the agreement to standardize workflows, control risk, and speed execution across industries.

Optica Ventures

Optica Ventures needed a standardized contract to manage multiple agency relationships and ensure enforceable billing across projects.

  • They adopted the Professional Agency Service Agreement.
  • Brian Fitzgibbons, COO, Optica Ventures LLC said: "The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers." This change reduced administrative friction and sped execution without changing contractual terms.

Martin Properties

A real estate services firm required remote execution and compliance tracking to close leases and agency engagements efficiently across multiple properties.

  • They centralized agreement templates and signatures online.
  • Tim Martin, Founder, Martin Properties said: "I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently."

How This Agreement Differs from a Contractor Agreement

Comparison highlights primary differences in parties, purpose, payment, and formalities between related document types.

Criteria Agency Service Agreement Independent Contractor Agreement
Typical parties client + agency client + contractor
Primary purpose ongoing services project-based services
Payment model retainer or fees fixed or hourly
Notarization norm not usually required not usually required

Frequently Asked Questions

Answers to common questions about enforceability, notarization, amendments, retention, and electronic execution for Professional Agency Service Agreements.


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