The Sales Representative Agreement is a crucial document for businesses operating in Indonesia who wish to expand their sales reach through independent representatives. This agreement is particularly important in the Indonesian market, where local presence and understanding of regional business practices are often essential for success. The document establishes the legal framework for appointing sales representatives while ensuring compliance with Indonesian regulations, including the Civil Code (Kitab Undang-undang Hukum Perdata) and Law No. 7 of 2014 on Trade. It addresses key aspects such as territory rights, commission structures, performance standards, and reporting requirements while maintaining clear distinctions between employment and independent contractor relationships. The agreement is designed to protect both parties' interests while facilitating effective market penetration and sales growth in Indonesia.
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1. Parties: Identification of the Principal company and the Sales Representative, including their complete legal names, registration numbers, and addresses
2. Background: Context of the agreement, nature of the Principal's business, and purpose of appointing the Sales Representative
3. Definitions: Definitions of key terms used throughout the agreement, including 'Territory', 'Products', 'Customers', 'Commission', etc.
4. Appointment and Scope: Terms of appointment, exclusivity/non-exclusivity, designated territory, and products covered
5. Term: Duration of the agreement, including start date and initial term
6. Rights and Obligations of Sales Representative: Detailed responsibilities, performance standards, reporting requirements, and compliance obligations
7. Rights and Obligations of Principal: Support to be provided, training, marketing materials, and product information obligations
8. Commission Structure: Commission rates, calculation methods, payment terms, and conditions for commission eligibility
9. Intellectual Property: Usage rights for trademarks, logos, and other IP, and protection obligations
10. Confidentiality: Protection of confidential information and trade secrets
11. Non-Competition and Non-Solicitation: Restrictions during and after the agreement term
12. Termination: Grounds for termination, notice periods, and consequences of termination
13. Governing Law and Dispute Resolution: Application of Indonesian law and dispute resolution mechanisms
14. General Provisions: Standard boilerplate clauses including force majeure, notices, and amendments
1. Minimum Performance Requirements: Include when specific sales targets or KPIs are required
2. Sub-Representatives: Include when the Sales Representative is permitted to appoint sub-representatives
3. Insurance: Include when specific insurance coverage is required from the Sales Representative
4. Data Protection: Include when personal data processing is involved in the sales activities
5. Export Control: Include when products may be subject to export regulations
6. Training and Certification: Include when specific training or certification requirements exist
7. Marketing and Promotion: Include when the Sales Representative has specific marketing responsibilities
8. Stock Handling: Include if the Sales Representative will maintain inventory
1. Schedule 1 - Territory Description: Detailed description of the geographical territory covered
2. Schedule 2 - Product List: Complete list of products/services the Sales Representative is authorized to sell
3. Schedule 3 - Commission Structure: Detailed commission rates, tiers, and calculation methods
4. Schedule 4 - Sales Targets: Specific sales targets and performance metrics
5. Schedule 5 - Reporting Templates: Standard forms for sales reports and documentation
6. Schedule 6 - Principal's Policies: Relevant company policies the Sales Representative must comply with
7. Appendix A - Power of Attorney: If required under Indonesian law for specific representative actions
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Consumer Goods
Technology
Pharmaceuticals
Industrial Equipment
Electronics
Automotive
Textiles
Food and Beverage
Construction Materials
Chemicals
Telecommunications
Medical Devices
Software and IT
Agricultural Products
Relevant Teams
Legal
Sales
Business Development
Compliance
Finance
Operations
Commercial
Contract Administration
Risk Management
International Trade
Relevant Roles
Sales Director
Commercial Director
Business Development Manager
Regional Sales Manager
Sales Operations Manager
Channel Manager
Legal Counsel
Compliance Officer
Contract Manager
Chief Commercial Officer
Sales Representative
Territory Manager
Account Executive
Business Development Director
Chief Executive Officer
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