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Sales Rep Contract for Philippines

Sales Rep Contract Template for Philippines

A comprehensive legal agreement governed by Philippine law that establishes the terms and conditions of engagement between a company and its sales representative. This contract defines the scope of representation, territory assignments, commission structures, and performance expectations while ensuring compliance with Philippine labor laws, particularly the Labor Code and Civil Code provisions regarding agency relationships. The document includes essential protections for both parties, including confidentiality clauses, non-compete provisions, and specific terms for termination, all structured within the framework of Philippine commercial and employment regulations.

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What is a Sales Rep Contract?

The Sales Rep Contract is a crucial document used to formally establish and govern the relationship between a company and its sales representatives in the Philippines. This agreement is essential for businesses looking to expand their sales force while maintaining clear legal and operational boundaries. The contract addresses key aspects such as territory rights, commission structures, performance metrics, and compliance with Philippine labor laws and commercial regulations. It's particularly important as it helps prevent future disputes by clearly outlining responsibilities, compensation terms, and protection of company interests. The document should be tailored to comply with specific industry regulations while maintaining alignment with the Labor Code of the Philippines and relevant employment laws. This contract type is commonly used across various industries where direct sales are a primary channel for revenue generation.

What sections should be included in a Sales Rep Contract?

1. Parties: Identification of the Company and the Sales Representative with complete legal names and addresses

2. Background: Context of the agreement and brief description of the business relationship to be established

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

4. Appointment and Territory: Formal appointment of the representative and definition of their geographic or customer territory

5. Term and Termination: Duration of the agreement and conditions for termination by either party

6. Duties and Responsibilities: Detailed obligations of the sales representative including sales targets, reporting, and conduct

7. Commission Structure: Calculation method for commissions, payment terms, and conditions for commission eligibility

8. Non-Competition: Restrictions on competing activities during and after the agreement term

9. Confidentiality: Protection of company information and trade secrets

10. Company Property: Handling and return of company materials, equipment, and documents

11. Relationship of Parties: Clarification of independent contractor status and tax responsibilities

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

What sections are optional to include in a Sales Rep Contract?

1. Performance Targets: Specific sales quotas and performance metrics, used when the company wants to set concrete targets

2. Training Requirements: Mandatory training programs and certifications, included when specific product knowledge is required

3. Expense Reimbursement: Terms for business expense claims, included when the company will cover certain expenses

4. Insurance Requirements: Specific insurance coverage requirements, used when the nature of products or services requires additional protection

5. Customer Development: Guidelines for developing and maintaining customer relationships, included for complex sales cycles

6. Marketing Support: Company's commitment to providing marketing materials and support, used when significant marketing assistance is provided

7. Minimum Purchase Requirements: Minimum stock levels or purchase commitments, included for product-based sales

8. Data Protection Obligations: Detailed data handling requirements, included when dealing with sensitive customer information

What schedules should be included in a Sales Rep Contract?

1. Schedule A - Product List: Detailed list of products or services the representative is authorized to sell

2. Schedule B - Commission Rates: Detailed commission structure including rates, tiers, and special promotions

3. Schedule C - Territory Description: Detailed description of geographic boundaries or customer segments

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

5. Schedule E - Reporting Templates: Standard 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 documentation

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

Philippines

Publisher

Ƶ

Document Type

Sale Agreement

Cost

Free to use
Relevant legal definitions


































Clauses


































Relevant Industries

Retail

Consumer Goods

Pharmaceuticals

Technology

Manufacturing

Industrial Products

Financial Services

Real Estate

Telecommunications

Healthcare

Food and Beverage

Automotive

Construction Materials

Relevant Teams

Sales

Legal

Human Resources

Compliance

Finance

Operations

Business Development

Commercial Operations

Contract Administration

Relevant Roles

Sales Representative

Sales Manager

Regional Sales Director

Business Development Manager

Account Executive

Territory Manager

Sales Operations Manager

Commercial Director

Chief Sales Officer

Human Resources Manager

Legal Counsel

Compliance Officer

Contract Administrator

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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