Not all agents work with contracts. Some will discuss their terms with you verbally or in a letter of intent, then attach an addendum to the publisher's contract for any sales they might make on your behalf. This is a perfectly legitimate and common way of operating. However, more and more agents have standard contracts they use and more and more writers insist on it.

1. Material to be Represented
   

    

   You might have only one book completed now, and so you aren't concerned about limiting the work your agent might represent for you. But, if you are, say, a published nonfiction writer with an established relationship with a publishing house, you would not want to give a percentage of your advance to an agent who had nothing to do with acquiring any book deals there. Be sure to specify what work your agent will represent.
   

    

2. Commissions
   

    

   Most agents take 15 percent for domestic sales,  20 percent, for overseas and film rights. Make sure the agent's commission is clearly stated.
   

    

3. Expenses
   

    

   Some agents charge expenses for photocopying, faxes, long distance telephone calls, messenger services, etc. Make sure you know in advance how much and when you will be charged for these expenses. Place a cap to limit the amount you are willing to spend. (Remember, legitimate agents do not charge reading fees.)
   

    

4. Termination of Your Contract
   

    

   Be sure the procedures for terminating your agent/client relationship are clearly spelled out and acceptable to you. Make sure your agent will agree to report to you on all submissions made on your behalf and will return any of your unsold work.