The Sales Representative Agreement is a crucial document used in the Philippine business environment to formalize the relationship between companies and their sales representatives. This agreement is essential when a business wants to expand its market reach through independent sales professionals or agencies without creating direct employment relationships. The document comprehensively covers appointment terms, territorial rights, commission structures, performance metrics, and compliance with Philippine regulations. It's particularly important in protecting both parties' interests while ensuring clarity in roles, responsibilities, and compensation arrangements. The agreement must comply with Philippine commercial law, including the Civil Code and relevant provisions of the Labor Code, especially regarding independent contractor classifications. It's commonly used across various industries and can be customized to accommodate different business models and sales arrangements while maintaining legal compliance.
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1. Parties: Identification of the principal company and the sales representative, including complete legal names and addresses
2. Background: Context of the agreement, brief description of the principal's business and need for sales representation
3. Definitions: Key terms used throughout the agreement including 'Territory', 'Products', 'Commission', 'Customers'
4. Appointment and Term: Formal appointment of the sales representative, nature of the relationship (non-employee status), and duration of the agreement
5. Territory and Products: Definition of the geographic area and specific products/services covered by the agreement
6. Duties and Responsibilities: Detailed obligations of the sales representative including sales targets, reporting, and customer service
7. Commission Structure: Calculation method for commissions, payment terms, and conditions for commission eligibility
8. Performance Standards: Minimum performance requirements, sales targets, and evaluation criteria
9. Intellectual Property: Protection of trademarks, logos, and other IP, usage rights and restrictions
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 requirements, and post-termination obligations
13. General Provisions: Standard clauses including governing law, dispute resolution, and amendment procedures
1. Exclusivity: Used when granting exclusive rights to the sales representative in the territory
2. Training and Support: Include when the principal provides specific training or support systems
3. Marketing and Advertising: When the representative has specific marketing responsibilities or restrictions
4. Insurance Requirements: When specific insurance coverage is required for the representative
5. Compliance with Industry Regulations: For regulated industries or products requiring specific compliance measures
6. Sub-Representatives: When the representative is allowed to appoint sub-representatives
7. Data Protection: Detailed section when extensive customer data handling is involved
8. Product Warranty: When the representative has specific responsibilities regarding product warranties
1. Schedule A - Products and Services: Detailed list of products/services the representative is authorized to sell
2. Schedule B - Territory Description: Detailed description of geographic boundaries and any excluded areas
3. Schedule C - Commission Rates: Detailed commission structure, including any variations by product or customer type
4. Schedule D - Sales Targets: Specific sales targets and performance metrics
5. Schedule E - Reporting Requirements: Templates and procedures for sales reporting
6. Appendix 1 - Operating Procedures: Detailed procedures for order processing, customer service, and other operational matters
7. Appendix 2 - Marketing Guidelines: Guidelines for use of principal's branding and marketing materials
8. Appendix 3 - Compliance Checklist: List of regulatory requirements and compliance procedures
Relevant legal definitions
Clauses
Relevant Industries
Consumer Goods
Retail
Manufacturing
Technology
Pharmaceuticals
Industrial Equipment
Financial Services
Telecommunications
Professional Services
Construction Materials
Automotive
Food and Beverage
Healthcare
Electronics
Relevant Teams
Legal
Sales
Business Development
Commercial Operations
Compliance
Human Resources
Finance
Operations
Contract Administration
Risk Management
Relevant Roles
Sales Director
Commercial Director
Business Development Manager
Sales Manager
Legal Counsel
Contracts Manager
Chief Commercial Officer
Sales Operations Manager
Territory Manager
Channel Manager
Regional Sales Manager
Chief Executive Officer
Chief Operating Officer
Compliance Officer
Human Resources Director
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