An agency agreement obligates the agent to enter into contracts with clients on behalf of and for the account of the principal, or to mediate contracts to the principal. The principal is obligated to pay the agent a fee for this

The agreement is suitable for use if, during its validity, the principal may enter into agency or other similar agreements with other parties to perform the same tasks in the same area and for the same client group as the agent.

In what cases is an agency agreement used?
Agency agreements are primarily used in the marketing of products and services. For example, travel agencies, insurance brokers, and home appliance sellers prefer to enter into agency agreements.

What costs must the principal reimburse the agent for?
An agency agreement is considered properly fulfilled if the agent has made reasonable efforts to conclude and mediate contracts. Therefore, a fee must be paid even if the desired result has not been achieved. The principal is also obligated to pay for contracts that were concluded after the agency agreement ended, but whose main groundwork was done by the agent.
In addition to the agency fee, the agent may request reimbursement from the principal for reasonable expenses incurred while fulfilling the agency agreement, provided that they exceed the typical expenses usually incurred in performing such an agency agreement. Reimbursement of normal expenses incurred in fulfilling the agency agreement may only be requested if it has been agreed upon or if it is customary in such cases (VÕS § 684).
The agent's request for reimbursement of expenses does not depend on whether the agent is entitled to receive the agency fee.

Under what conditions can the agency agreement be terminated?
Either party may terminate an indefinite agency agreement by providing at least one month's notice. If the agreement has lasted more than one year, and acting as an agent has been the person's main activity, the principal must give at least two months' notice before terminating the agency agreement. If the agreement has lasted more than two years, and acting as an agent has been the person's main activity, the principal must give at least three months' notice before terminating the agency agreement. The agreement may only be terminated at the end of a month.
The notice periods can be extended by agreement, but they must be the same for both the agent and the principal.
The premature, extraordinary termination of the agreement by either party is allowed only for a valid reason. A valid reason is considered to be a situation where, taking all circumstances into account and weighing the interests of both parties, it would be unreasonable to expect the party wishing to terminate the agreement to continue fulfilling it until its regular termination.
An agreement excluding or limiting the right to terminate the agency agreement for a valid reason is void.