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Independent Sales Rep Contract Template for Malaysia

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Key Requirements PROMPT example:

Independent Sales Rep Contract

"I need an Independent Sales Rep Contract for our Malaysian technology company, focusing on software sales in the Kuala Lumpur and Selangor regions, with specific provisions for remote sales activities and digital product demonstrations starting March 2025."

Document background
The Independent Sales Rep Contract is essential for businesses operating in Malaysia who wish to expand their sales reach through independent contractors rather than direct employees. This document is particularly relevant in scenarios where companies need flexible sales force solutions without the obligations of traditional employment relationships. The contract addresses key aspects required under Malaysian law, including clear delineation of independent contractor status, commission structures, territorial rights, and compliance with local commercial regulations. It incorporates necessary provisions from Malaysian legislation, including the Contracts Act 1950 and relevant commercial laws, while providing comprehensive protection for both the principal company and the sales representative. The agreement is structured to prevent potential misclassification issues under Malaysian employment law while ensuring clear guidelines for sales activities, reporting requirements, and performance expectations.
Suggested Sections

1. Parties: Identification of the principal company and the independent sales representative, including full legal names and addresses

2. Background: Context of the agreement, nature of the principal's business, and purpose of engaging an independent sales representative

3. Definitions: Key terms used throughout the agreement, including 'Products', 'Territory', 'Commissions', 'Customers', etc.

4. Appointment and Scope: Formal appointment of the representative, confirmation of independent contractor status, and scope of authority

5. Territory and Products: Definition of geographic territory and specific products/services the representative is authorized to sell

6. Representative's Duties and Responsibilities: Detailed obligations, sales targets, reporting requirements, and professional conduct expectations

7. Commission Structure: Commission rates, calculation methods, payment terms, and conditions for earning commissions

8. Term and Termination: Duration of the agreement, renewal terms, and grounds for termination by either party

9. Intellectual Property and Confidentiality: Protection of company's IP, confidential information, and trade secrets

10. Non-Competition and Non-Solicitation: Restrictions during and after the agreement term

11. Indemnification and Liability: Mutual indemnification provisions and limitation of liability

12. General Provisions: Standard clauses including governing law, notices, entire agreement, and amendments

Optional Sections

1. Marketing and Advertising: Guidelines for marketing activities and use of company materials, included when representative has marketing responsibilities

2. Training Requirements: Specific training obligations and certifications, included when industry-specific training is required

3. Expense Reimbursement: Terms for reimbursable expenses, included when company will cover certain costs

4. Customer Support: Post-sale support obligations, included when representative handles customer service

5. Minimum Performance Requirements: Specific sales targets and consequences, included when performance metrics are crucial

6. Sub-Representatives: Terms for engaging sub-representatives, included when delegation is permitted

7. Insurance Requirements: Specific insurance coverage requirements, included for high-risk products or services

8. Data Protection: Detailed PDPA compliance requirements, included when handling significant customer data

Suggested Schedules

1. Schedule A - Products and Services: Detailed list of authorized products/services with specifications and pricing

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

3. Schedule C - Territory Map: Detailed description or map of assigned sales territory

4. Schedule D - Sales Targets: Specific sales quotas and performance metrics

5. Schedule E - Reporting Templates: Required forms and formats for sales reports and documentation

6. Appendix 1 - Company Policies: Relevant company policies affecting sales activities

7. Appendix 2 - Training Manual: Product knowledge and sales process guidelines

8. Appendix 3 - Approved Marketing Materials: Templates and guidelines for sales and marketing materials

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




























Clauses






























Relevant Industries

Manufacturing

Consumer Goods

Technology

Healthcare Products

Industrial Equipment

Telecommunications

Financial Services

Software and IT

Pharmaceutical

Construction Materials

Automotive

Electronics

Food and Beverage

Professional Services

Relevant Teams

Sales

Legal

Commercial

Business Development

Compliance

Human Resources

Operations

Finance

Contract Administration

Relevant Roles

Sales Director

Business Development Manager

Commercial Director

Legal Counsel

Contracts Manager

Sales Operations Manager

Channel Manager

Regional Sales Manager

Chief Commercial Officer

Sales Administrator

Compliance Officer

HR Director

Independent Sales Representative

Territory Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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