Manufacturers and suppliers of goods often use agents who work on their behalf in sales promotion, both in the manufacturer`s home country and abroad. As a rule, a formal agreement is signed that sets out the commission received by the agent, the territory, the duration and other conditions under which the client and the agent will do business together. An agency contract is used when a person must act as an agent to sell for payment of commissions the products, goods or services of the other party, normally known as the principal. In an agency contract, the parties may provide different details of the relationship between the parties, including a description of the services that the agent will provide, as well as the general activities of the contracting entity and how the contracting entity should pay. .