Sales Agent Commission Agreement

Sales Agent Commission Agreement Template for Denmark

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Document background

The Sales Agent Commission Agreement is a crucial document for businesses operating in Denmark that wish to expand their sales reach through independent sales agents. This agreement type is specifically governed by the Danish Commercial Agents Act (Handelsagentloven), which implements EU Directive 86/653/EEC, providing strong protections for commercial agents. The document is essential when a company (principal) wants to engage an independent agent to promote and sell their products or services in a defined territory, without creating an employment relationship. It covers critical aspects such as commission rates, payment terms, territory definitions, performance expectations, and termination provisions, while ensuring compliance with mandatory Danish legal requirements regarding agent protection and compensation rights.

Suggested Sections

1. Parties: Identification and details of the Principal and the Agent, including business registration numbers and addresses

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Territory: Scope of agent's appointment and defined geographical territory

5. Products: Description of products/services the agent is authorized to sell

6. Agent's Rights and Obligations: Detailed responsibilities including promotion, reporting, and compliance requirements

7. Principal's Rights and Obligations: Principal's commitments including support, information provision, and product supply

8. Commission Structure: Detailed commission rates, calculation methods, and payment terms

9. Intellectual Property: Usage rights and restrictions regarding principal's trademarks and materials

10. Confidentiality: Obligations regarding confidential information and trade secrets

11. Term and Termination: Duration of agreement and termination provisions including notice periods

12. Post-Termination: Rights and obligations after termination, including compensation or indemnity

13. Governing Law and Jurisdiction: Specification of Danish law and jurisdiction for dispute resolution

Optional Sections

1. Non-Compete: Restrictions on agent's competitive activities during and after the agreement - include when exclusivity is required

2. Performance Targets: Specific sales targets and consequences of not meeting them - include when performance measurement is crucial

3. Sub-Agents: Rights and conditions for appointing sub-agents - include when sub-agents might be needed

4. Data Protection: GDPR compliance provisions - include when personal data processing is extensive

5. Insurance: Required insurance coverage - include when specific risks need to be covered

6. Marketing Requirements: Specific marketing obligations and standards - include when marketing is a key component

7. Training Requirements: Training obligations and procedures - include when product complexity requires specific training

Suggested Schedules

1. Schedule 1 - Products and Services: Detailed list of products/services covered by the agreement

2. Schedule 2 - Commission Rates: Detailed commission structure, including any variations by product or customer type

3. Schedule 3 - Territory Description: Detailed description of geographical territory including any exclusions

4. Schedule 4 - Reporting Requirements: Templates and procedures for regular reporting

5. Schedule 5 - Marketing Materials: Approved marketing materials and usage guidelines

6. Appendix A - Performance Metrics: Detailed performance targets and measurement criteria

7. Appendix B - Operating Procedures: Detailed procedures for order processing and customer handling

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