A Sales Representative Agreement is essential when a company wishes to engage independent sales professionals or firms to market and sell their products or services. This document is particularly important in the United States, where both federal and state laws govern sales representative relationships. The agreement typically includes detailed provisions about commission structures, territory assignments, performance metrics, and protection of intellectual property. It serves to protect both parties by clearly defining their rights and obligations, while ensuring compliance with applicable laws such as state sales representative acts and federal labor regulations. The agreement is commonly used across various industries and can be customized to address specific business needs while maintaining legal compliance.
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1. Parties: Identifies the contracting parties: the company and the sales representative
2. Background: Brief context explaining the purpose of the agreement and the parties' intentions
3. Definitions: Key terms used throughout the agreement including commission, territory, products, and other important definitions
4. Appointment and Scope: Terms of appointment and scope of sales representative's authority
5. Territory and Products: Defined geographic area and products covered by the agreement
6. Compensation: Commission structure, payment terms, and calculation methods
7. Term and Termination: Duration of agreement and conditions for termination
8. Obligations of the Parties: Responsibilities and duties of both parties
9. Confidentiality: Protection of confidential information
10. Governing Law: Applicable law and jurisdiction
1. Non-Compete: Restrictions on competing activities during and after the agreement term
2. Training and Support: Company's obligations regarding representative training and ongoing support
3. Performance Targets: Specific sales goals and metrics required to maintain the relationship
4. Insurance Requirements: Required insurance coverage and minimum policy amounts
5. Intellectual Property: Usage rights and restrictions regarding trademarks and other intellectual property
1. Commission Schedule: Detailed breakdown of commission rates and calculation methods
2. Territory Map: Visual representation of assigned sales territory
3. Product List: Comprehensive list of products covered by the agreement
4. Sales Targets: Detailed performance metrics and goals
5. Reporting Templates: Standard forms for sales reporting and documentation
Relevant legal definitions
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