Document background
The Independent Sales Representative Agreement is essential for businesses operating in Pakistan that wish to expand their sales reach through independent contractors rather than employed salespeople. This document is particularly crucial as it establishes a clear independent contractor relationship, helping avoid potential misclassification under Pakistani employment law. The agreement covers critical aspects including territory rights, commission structures, performance expectations, and compliance requirements, while ensuring alignment with Pakistani commercial law, including the Contract Act 1872 and relevant tax regulations. It's commonly used when companies want to expand into new markets or territories without establishing direct employment relationships, offering flexibility while maintaining legal compliance and protecting both parties' interests.
