The Sales Authorization Letter is a crucial document in Philippine business operations, particularly when companies need to formally delegate sales authority to representatives or agents. This document is essential for businesses expanding their sales networks through authorized representatives while maintaining control over their brand and sales processes. It complies with the Civil Code of the Philippines provisions on agency relationships and the Code of Commerce requirements for commercial transactions. The letter typically includes specific details about products or services that can be sold, territorial limitations, pricing authority, commission structures, and the duration of the authorization. It serves as legal protection for both the authorizing company and the sales representative, clearly defining the scope and limitations of the sales authority granted.
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1. Letter Header: Complete contact information of the authorizing party, date, and recipient's details
2. Subject Line: Clear indication that this is a Sales Authorization Letter
3. Salutation: Formal greeting to the recipient
4. Authorization Statement: Clear and explicit statement granting sales authority to the named individual or entity
5. Scope of Authority: Detailed description of what products/services can be sold and in what territory
6. Duration: Time period for which the authorization is valid
7. Terms and Conditions: Key conditions governing the sales authorization, including any pricing guidelines or commission structures
8. Closing: Formal closing statement with signature block for authorizing party
1. Commission Structure: Include when the authorization includes specific commission rates or payment terms
2. Reporting Requirements: Include when the authorized party needs to provide regular sales reports
3. Non-Compete Clause: Include when the authorized party should be restricted from selling competing products
4. Confidentiality Statement: Include when the sales activity involves access to confidential information
5. Territory Restrictions: Include when sales authority is limited to specific geographic areas
6. Performance Targets: Include when specific sales targets or quotas are part of the authorization
1. Product List: Detailed list of products or services covered by the authorization
2. Price List: Official pricing guidelines and authorized discounts
3. Commission Schedule: Detailed breakdown of commission rates and calculation methods
4. Territory Map: Visual representation of authorized sales territory if geographically restricted
Relevant legal definitions
Clauses
Relevant Industries
Retail
Manufacturing
Consumer Goods
Technology
Pharmaceuticals
Real Estate
Financial Services
Automotive
Electronics
Industrial Equipment
Fast-Moving Consumer Goods (FMCG)
Telecommunications
Relevant Teams
Sales
Legal
Business Development
Commercial Operations
Channel Management
Distribution
Compliance
Contract Administration
Corporate Affairs
Regional Operations
Relevant Roles
Sales Director
Sales Manager
Business Development Manager
Sales Representative
Channel Manager
Regional Sales Manager
Chief Commercial Officer
Sales Operations Manager
Account Executive
Territory Manager
Distribution Manager
Sales Administrator
Legal Counsel
Compliance Officer
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