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Sales Representative Agreement for New Zealand

Sales Representative Agreement Template for New Zealand

A comprehensive legal agreement governed by New Zealand law that establishes the terms and conditions under which a sales representative will promote and sell products or services on behalf of a company. The agreement covers essential elements including territory rights, commission structures, performance expectations, and compliance with New Zealand commercial law requirements. It addresses both the commercial aspects of the sales relationship and the legal obligations under New Zealand's Contract and Commercial Law Act 2017, Fair Trading Act 1986, and other relevant legislation, while clearly defining the nature of the relationship between the parties.

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Sales Representative Agreement

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What is a Sales Representative Agreement?

The Sales Representative Agreement is a crucial document for businesses operating in New Zealand that wish to engage individuals or entities to promote and sell their products or services. This agreement is designed to comply with New Zealand legal requirements while protecting both parties' interests. It is commonly used when a company wants to expand its sales presence without directly employing sales staff, or when establishing formal arrangements with existing sales representatives. The agreement covers essential commercial terms including territory definitions, commission structures, sales targets, and reporting requirements, while ensuring compliance with New Zealand's commercial, employment, and fair trading laws. It is particularly important for clearly establishing whether the relationship is one of independent contractor or employment, which has significant implications under New Zealand law.

What sections should be included in a Sales Representative Agreement?

1. Parties: Identifies and provides full legal details of the company and the sales representative

2. Background: Sets out the context of the agreement, including the company's business and its desire to engage the sales representative

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Status: Establishes the appointment of the sales representative and clarifies their status as an independent contractor or employee

5. Term: Specifies the duration of the agreement, including start date and any renewal provisions

6. Territory and Products: Defines the geographical area and products/services the representative is authorized to sell

7. Duties and Obligations: Details the responsibilities and requirements of the sales representative

8. Commission Structure: Outlines the basic commission rates and payment terms

9. Reporting Requirements: Specifies the sales reports, customer information, and other documentation the representative must provide

10. Confidentiality: Protects the company's confidential information and trade secrets

11. Intellectual Property: Addresses ownership and usage of trademarks, logos, and other IP

12. Non-Compete and Non-Solicitation: Restricts competitive activities during and after the agreement

13. Termination: Sets out grounds and procedures for ending the agreement

14. Post-Termination Obligations: Specifies obligations that survive after the agreement ends

15. General Provisions: Contains standard legal clauses including governing law, notices, and entire agreement

What sections are optional to include in a Sales Representative Agreement?

1. Performance Targets: Include when specific sales targets or KPIs are required for the role

2. Training Requirements: Include when the company provides mandatory training programs

3. Equipment and Resources: Include when the company provides specific tools, vehicles, or equipment

4. Expenses: Include when the representative can claim certain expenses from the company

5. Insurance Requirements: Include when the representative must maintain specific insurance coverage

6. Sub-Agents: Include when the representative is permitted to appoint sub-agents

7. Data Protection: Include when the role involves significant handling of personal data

8. Marketing and Advertising: Include when the representative has specific marketing responsibilities or restrictions

9. Customer Service Standards: Include when specific customer service levels must be maintained

What schedules should be included in a Sales Representative Agreement?

1. Schedule 1 - Territory Map: Detailed map or description of the sales territory

2. Schedule 2 - Product List: Comprehensive list of products/services the representative is authorized to sell

3. Schedule 3 - Commission Rates: Detailed commission structure, including any variations and special rates

4. Schedule 4 - Sales Targets: Specific sales targets and any associated bonus structures

5. Schedule 5 - Reporting Templates: Standard forms and templates for required reports

6. Schedule 6 - Company Policies: Relevant company policies the representative must comply with

7. Appendix A - Sample Customer Agreement: Standard form of customer agreement the representative may use

8. Appendix B - Expense Policy: Details of allowable expenses and claim procedures

Authors

Alex Denne

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

Jurisdiction

New Zealand

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions








































Clauses








































Relevant Industries

Retail

Manufacturing

Technology

Consumer Goods

Professional Services

Healthcare

Industrial Products

Construction Materials

Telecommunications

Financial Services

Automotive

Food and Beverage

Agriculture

Real Estate

Software and IT

Relevant Teams

Sales

Legal

Human Resources

Finance

Operations

Commercial

Business Development

Compliance

Contract Administration

Regional Management

Relevant Roles

Sales Representative

Sales Agent

Business Development Manager

Territory Manager

Regional Sales Manager

Sales Director

Account Executive

Commercial Manager

Sales Consultant

Distribution Partner

Independent Sales Contractor

Channel Partner Manager

Product Specialist

Sales Engineer

Market Development 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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