Can an agent legally bind the company to contracts?

Only if the agreement explicitly grants signing authority. Most enterprises restrict agents to negotiation and lead generation, with final approvals retained internally to reduce unauthorized commitment risk.

How are commissions typically calculated under agency agreements?

Commissions are usually based on transaction value, collected revenue, or achieved milestones. Well-structured agreements define payment triggers, clawback rights, and dispute resolution mechanisms to prevent overpayment.

What compliance risks are most common in agency relationships?

Key risks include bribery and corruption exposure, improper disclosures, data privacy breaches, and misrepresentation of products or pricing. Clear compliance obligations and audit rights help mitigate these risks.

How can enterprises maintain control over large agent networks?

Control is maintained through standardized templates, defined authority limits, centralized reporting, performance monitoring, and consistent renewal reviews. CLM platforms support these controls at scale.