Travel Agency Trust Agreement
This Travel Agency Trust Agreement ("Agreement") is entered into on [Date], by and between [Your Company Name], a company duly registered and operating under the laws of [State], with its principal place of business located at [Your Company Address] ("Agency"), and the clients of the Agency ("Clients").
1. Definitions
For the purposes of this Agreement:
"Agency" shall refer to [Your Company Name].
"Client" shall refer to any individual or entity utilizing the services of the Agency.
"Trust Account" shall refer to the account established by the Agency to hold funds in trust for the benefit of Clients.
"Trustee" shall refer to the designated entity or individual responsible for managing the Trust Account.
"Services" shall refer to the travel-related services provided by the Agency, including but not limited to booking flights, accommodations, transportation, and tours.
2. Establishment of Trust Account
The Agency shall establish and maintain a Trust Account for the benefit of its Clients. The Trust Account shall be held at a reputable financial institution and shall be segregated from the Agency's operational funds.
The Agency shall appoint [Name of Trustee] as the Trustee responsible for managing the Trust Account in accordance with the terms of this Agreement.
3. Trust Funds
Funds deposited into the Trust Account shall consist of payments made by Clients for travel-related services booked through the Agency. Such funds shall be held in trust for the benefit of the Clients and shall not be commingled with the Agency's own funds.
The Trustee shall ensure that the Trust Account is adequately funded to cover the costs of services booked on behalf of Clients.
4. Trustee's Duties and Responsibilities
The Trustee shall exercise reasonable care and diligence in managing the Trust Account and shall act in the best interests of the Clients.
The Trustee shall maintain accurate records of all transactions related to the Trust Account and shall provide regular reports to the Agency and Clients upon request.
The Trustee shall disburse funds from the Trust Account only for the purposes authorized by the Clients or as otherwise permitted under this Agreement.
5. Use of Trust Funds
Funds held in the Trust Account shall only be used for the payment of travel-related services booked on behalf of Clients. The Agency shall not use Trust Funds for its own operating expenses or any other purpose not authorized by the Clients.
Clients acknowledge that the Agency may earn interest on funds held in the Trust Account, and such interest shall be retained by the Agency as compensation for its services unless otherwise agreed upon.
6. Disbursements and Refunds
The Trustee shall disburse funds from the Trust Account to suppliers and vendors for the provision of travel-related services in accordance with the terms of the bookings made by Clients.
In the event of cancellations or changes to bookings, the Trustee shall process refunds promptly and in accordance with the Agency's refund policy and applicable laws and regulations.
7. Trust Account Administration
The Trustee shall manage the Trust Account in compliance with all relevant laws, regulations, and industry standards governing the operation of trust accounts for travel agencies.
The Trustee shall provide the Agency and Clients with access to account statements and other relevant information pertaining to the Trust Account upon request.
8. Termination of Agreement
This Agreement may be terminated by either party upon written notice to the other party.
Upon termination of this Agreement, the Trustee shall distribute any remaining funds held in the Trust Account to the Clients in accordance with their respective entitlements.
9. Liability and Indemnification
The Agency and Trustee shall not be liable for any loss, damage, or expense incurred by Clients arising from circumstances beyond their control, including but not limited to acts of God, natural disasters, or changes in government regulations.
Clients agree to indemnify and hold harmless the Agency and Trustee from any claims, losses, or damages arising from their use of the Agency's services or the Trust Account.
10. Governing Law and Dispute Resolution
This Agreement shall be governed by the laws of [State]. Any disputes arising out of or in connection with this Agreement shall be resolved through arbitration in accordance with the rules of [Arbitration Institution].
11. Miscellaneous
This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral, relating to such subject matter.
Any amendments or modifications to this Agreement must be made in writing and signed by both parties.
12. Signatures
This Agreement shall be executed in two copies, whereby each party involved shall retain one original copy for their records.
Signed and agreed to by:
[Your Name]
[Date]
[Second Party]
[Date]
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