How to Write a Agency / Mandate Agreement (AMA)
Follow these steps to draft a Agency / Mandate Agreement (AMA) that survives counterparty review, bank scrutiny and, if needed, ICC arbitration. Grab the free Agency / Mandate Agreement (AMA) template at the end.
Step-by-step
- 1. Principal & mandateName the principal (seller or buyer) and the mandate. State the mandate's authority: introduce, negotiate, execute.
- 2. Scope of authorityWhich counterparties, which commodities, which geographies, which value cap per deal.
- 3. CommissionCommission rate, payment mechanism (link to IMFPA where used).
- 4. Duration & terminationInitial term, renewal, notice period for termination.
- 5. Law & arbitrationGoverning law, arbitration seat.
Common pitfalls to avoid
- Leaving placeholder text like [ ] or {seller name} in the executed copy.
- Missing signature date, or signing outside the validity window quoted on the document.
- Referencing Incoterms without the year - always cite 'Incoterms 2020'.
- Omitting the arbitration seat and governing law - defaults vary by country.
Free template
Free Agency / Mandate Agreement (AMA) Template
Free Agency / Mandate Agreement template in Word and PDF. Formal appointment draft between principal and mandate for commodity trading representation.
How to Write a Agency / Mandate Agreement (AMA): Quick Overview
Follow these steps to draft a Agency / Mandate Agreement (AMA) that survives counterparty review, bank scrutiny and, if needed, ICC arbitration. Grab the free Agency / Mandate Agreement (AMA) template at the end.
Numerical Example: How to Write a Agency / Mandate Agreement (AMA) Step-by-Step
Key pitfall to avoid: Leaving placeholder text like [ ] or {seller name} in the executed copy.
1. Principal & mandateName the principal (seller or buyer) and the mandate. State the mandate's author
2. Scope of authorityWhich counterparties, which commodities, which geographies, which value cap per
3. CommissionCommission rate, payment mechanism (link to IMFPA where used).
OutcomeFollow all steps in order for best results
Source: SSLT Global Editorial - How to Write a Agency / Mandate Agreement (AMA)
Last reviewed: October 2026
FAQ
Do mandates need a licence?
In many jurisdictions, brokering physical commodities does not need a licence, but tax registration is still required.
Can the AMA be exclusive?
Yes, but state exclusivity narrowly (specific commodity, region and counterparties) or the principal will resist.
Other how-to guides
How to Write a Sales & Purchase Agreement (SPA)How to Write a Letter of Intent (LOI)How to Write a Irrevocable Corporate Purchase Order (ICPO)How to Write a Full Corporate Offer (FCO)How to Write a Soft Corporate Offer (SCO)How to Write a Non-Disclosure Agreement (NDA)How to Write a NCNDA (Non-Circumvention, Non-Disclosure)How to Write a IMFPA (Irrevocable Master Fee Protection)