What is Agency agreement?
Also known as: commission agreement
An agreement under which one party (the agent) sells the goods of the other party on its instructions for a fee; until sold, the goods remain the owner's property. The owner accounts for the goods dispatched in account 2960 (2830 if finished goods), and the agent keeps them off the balance sheet in account 004 (NAS No. 21, paragraphs 140 and 150).