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The Sales Agent Contract Agreement is a crucial document used when a company (principal) wishes to appoint an agent to promote and sell its products or services in Pakistan. This agreement is essential for businesses expanding their market reach through indirect sales channels, providing a legal framework that protects both parties' interests while ensuring compliance with Pakistani law. The document typically includes detailed provisions on territory rights, commission structures, performance targets, and reporting requirements. It's particularly important in the Pakistani context where commercial relationships often rely heavily on agency arrangements, and must comply with local commercial laws including the Contract Act 1872, Sales of Goods Act 1930, and relevant Islamic commercial principles. The agreement helps prevent future disputes by clearly defining roles, responsibilities, and compensation structures while establishing proper governance mechanisms for the agency relationship.

1. Parties: Identification of the Principal and Sales Agent with full legal names, addresses, and registration details

2. Background: Context of the agreement, brief description of the Principal's business and purpose of appointing the Sales Agent

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

4. Appointment and Territory: Formal appointment of the agent and definition of the geographical area where the agent is authorized to operate

5. Agent's Rights and Obligations: Detailed responsibilities including sales targets, reporting requirements, and standard of service

6. Principal's Rights and Obligations: Principal's commitments including product supply, support, and training obligations

7. Commission Structure: Detailed breakdown of commission rates, calculation methods, and payment terms

8. Intellectual Property Rights: Usage rights for trademarks, logos, and marketing materials

9. Confidentiality: Protection of business secrets and confidential information

10. Term and Termination: Duration of agreement and conditions for termination

11. Post-Termination Obligations: Responsibilities and restrictions after agreement ends

12. Governing Law and Jurisdiction: Specification of Pakistani law as governing law and jurisdiction for disputes

13. General Provisions: Standard clauses including notices, amendments, and entire agreement provisions