diff --git a/.changeset/fix-agreement-version-sort.md b/.changeset/fix-agreement-version-sort.md
new file mode 100644
index 0000000000..251c573d1a
--- /dev/null
+++ b/.changeset/fix-agreement-version-sort.md
@@ -0,0 +1,5 @@
+---
+"adcontextprotocol": patch
+---
+
+Fix semantic version sorting for agreements. When multiple agreement versions share the same effective date, the system now correctly selects the highest version (e.g., 1.1.1 before 1.1).
diff --git a/server/public/admin-agreements.html b/server/public/admin-agreements.html
index 630a597bb8..a78eb5f3cd 100644
--- a/server/public/admin-agreements.html
+++ b/server/public/admin-agreements.html
@@ -284,6 +284,22 @@ <h2 id="modalTitle">Edit Agreement</h2>
       }
     }
 
+    // Compare semantic versions (e.g., "1.1.1" > "1.1" > "1.0")
+    function compareVersions(a, b) {
+      const partsA = a.split('.').map(Number);
+      const partsB = b.split('.').map(Number);
+      const maxLen = Math.max(partsA.length, partsB.length);
+
+      for (let i = 0; i < maxLen; i++) {
+        const numA = partsA[i] || 0;
+        const numB = partsB[i] || 0;
+        if (numA !== numB) {
+          return numB - numA; // Descending order (higher versions first)
+        }
+      }
+      return 0;
+    }
+
     // Render agreements list
     function renderAgreementsList() {
       const listDiv = document.getElementById('agreementsList');
@@ -302,6 +318,11 @@ <h2 id="modalTitle">Edit Agreement</h2>
         grouped[agreement.agreement_type].push(agreement);
       });
 
+      // Sort each group by version (descending - newest first)
+      Object.keys(grouped).forEach(type => {
+        grouped[type].sort((a, b) => compareVersions(a.version, b.version));
+      });
+
       const formatType = (type) => {
         const types = {
           'terms_of_service': 'Terms of Service',
diff --git a/server/src/db/company-db.ts b/server/src/db/company-db.ts
index f7e06de3a4..f12bbf8dc2 100644
--- a/server/src/db/company-db.ts
+++ b/server/src/db/company-db.ts
@@ -231,7 +231,10 @@ export class CompanyDatabase {
   async getCurrentAgreement(): Promise<Agreement | null> {
     const pool = getPool();
     const result = await pool.query(
-      'SELECT * FROM agreements ORDER BY effective_date DESC LIMIT 1'
+      `SELECT * FROM agreements
+       ORDER BY effective_date DESC,
+         string_to_array(version, '.')::int[] DESC
+       LIMIT 1`
     );
     return result.rows.length > 0 ? this.mapAgreement(result.rows[0]) : null;
   }
diff --git a/server/src/db/organization-db.ts b/server/src/db/organization-db.ts
index d7acd87cde..d23e51578b 100644
--- a/server/src/db/organization-db.ts
+++ b/server/src/db/organization-db.ts
@@ -176,7 +176,10 @@ export class OrganizationDatabase {
   async getCurrentAgreement(): Promise<Agreement | null> {
     const pool = getPool();
     const result = await pool.query(
-      'SELECT * FROM agreements ORDER BY effective_date DESC LIMIT 1'
+      `SELECT * FROM agreements
+       ORDER BY effective_date DESC,
+         string_to_array(version, '.')::int[] DESC
+       LIMIT 1`
     );
     return result.rows[0] || null;
   }
@@ -285,7 +288,11 @@ export class OrganizationDatabase {
   async getCurrentAgreementByType(type: string): Promise<Agreement | null> {
     const pool = getPool();
     const result = await pool.query(
-      'SELECT * FROM agreements WHERE agreement_type = $1 ORDER BY effective_date DESC LIMIT 1',
+      `SELECT * FROM agreements
+       WHERE agreement_type = $1
+       ORDER BY effective_date DESC,
+         string_to_array(version, '.')::int[] DESC
+       LIMIT 1`,
       [type]
     );
     return result.rows[0] || null;