The Freight Forwarder Agency Agreement is essential for freight forwarding companies expanding their operations through local representatives in specific territories. This document, governed by German law, establishes the legal framework for appointing and managing freight forwarding agents who will represent the principal's interests in designated areas. It is particularly important in international logistics operations where local expertise and presence are required. The agreement covers crucial aspects such as service scope, commission structures, operational procedures, and compliance requirements, while ensuring alignment with German Commercial Code (HGB) provisions and EU regulations. This document is typically used when a freight forwarder wants to establish a formal agency relationship, requiring detailed documentation of rights, obligations, and commercial terms between the parties.
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1. Parties: Identification of the Principal (shipping company/freight forwarder) and the Agent, including full legal names, registration details, and addresses
2. Background: Context of the agreement, brief description of the parties' businesses, and purpose of the agency relationship
3. Definitions: Definitions of key terms used throughout the agreement, including technical shipping terms and specific industry terminology
4. Appointment and Territory: Scope of agent's appointment, geographical territory, and whether the appointment is exclusive or non-exclusive
5. Agent's Rights and Obligations: Detailed responsibilities including customer service, booking management, documentation handling, and local representation
6. Principal's Rights and Obligations: Principal's commitments, including provision of information, marketing materials, and operational support
7. Commission and Payment Terms: Commission structure, calculation method, payment terms, and currency specifications
8. Operating Procedures: Day-to-day operational procedures, booking processes, and documentation requirements
9. Compliance and Regulations: Obligations regarding local laws, customs regulations, and industry standards
10. Liability and Insurance: Liability limitations, indemnification provisions, and required insurance coverage
11. Term and Termination: Duration of agreement, renewal terms, and grounds for termination
12. Confidentiality: Protection of confidential information and trade secrets
13. Data Protection: GDPR compliance and data handling requirements
14. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction for disputes
15. General Provisions: Standard boilerplate clauses including force majeure, notices, and amendments
1. Non-Compete Clause: Restrictions on agent's ability to represent competing principals (include when exclusivity is important)
2. Performance Targets: Specific KPIs and performance metrics (include when volume-based incentives are needed)
3. Marketing and Promotion: Specific obligations regarding marketing activities (include when agent has significant marketing responsibilities)
4. Training and Support: Principal's obligations for training and systems support (include for complex operations or new agents)
5. Intellectual Property Rights: Use of trademarks and branding (include when significant brand presence is required)
6. Bank Guarantee: Requirements for financial security (include when handling significant financial transactions)
7. Succession Planning: Procedures for change in ownership or key personnel (include for long-term strategic relationships)
1. Schedule 1 - Territory Definition: Detailed description of geographical territory and any excluded areas
2. Schedule 2 - Commission Structure: Detailed commission rates, calculation methods, and examples
3. Schedule 3 - Operating Procedures Manual: Detailed procedures for bookings, documentation, and daily operations
4. Schedule 4 - Service Level Agreement: Specific performance metrics and service standards
5. Schedule 5 - Approved Sub-agents: List of pre-approved sub-agents if applicable
6. Appendix A - Required Reports: Templates and timing for required operational and financial reports
7. Appendix B - Insurance Requirements: Detailed insurance coverage requirements and minimum limits
8. Appendix C - Contact Details: Key contact persons and escalation procedures
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