Breaking an Agency Agreement

Breaking an Agency Agreement: What You Need to Know

As a business owner, you may find yourself entering into an agreement with an agency for their products or services. The agency agreement is a legal document that outlines the terms and conditions of the relationship between you and the agency. This agreement could be regarding anything from marketing services to web development or even legal advice. However, sometimes circumstances arise which can lead to the need to break the agency agreement. In this article, we’ll delve into the key things to keep in mind when you find yourself in this situation.

Review the Agency Agreement

The first step in breaking an agency agreement is to review the contract to determine the consequences for breaking the agreement. Most agency agreements will stipulate a notice period, penalty fees, or the termination process. If you’re considering breaking the agreement, it’s important to understand the contractual obligations and consequences to avoid any legal repercussions.

Communicate with the Agency

Communication is key when it comes to dissolving an agency agreement. Reach out to the agency and discuss the situation, explaining your reasons for wanting to break the agreement. This is important for two reasons; firstly, it could lead to an amicable resolution with the agency, and secondly, it could help in reducing the penalty fees or other consequences outlined in the agreement.

Consider Mediation or Arbitration

If negotiations with the agency fail, it might be worth considering mediation or arbitration. This involves bringing in an experienced mediator or arbitrator to help resolve the dispute and reach a mutually beneficial agreement. This option is particularly effective if both parties want to avoid going to court and settling the matter in a more cost-effective and timely manner.

Consult with a Legal Advisor

Breaking an agency agreement can be a complex legal matter, so it’s always recommended to consult with a legal advisor. A legal advisor can review the agency agreement, advise you on your legal rights and obligations, and help you navigate the legal process if necessary.


Breaking an agency agreement can be a stressful and complicated process. It’s important to review the agreement, communicate with the agency, consider mediation or arbitration, and seek legal advice if necessary. By following these steps, you can effectively dissolve the agency agreement and move on to a more suitable agreement that works for you and your business.