The distribution agency may not provide misleading or false information about products or companies in this distribution agency agreement. 5. Contractual terms and termination of the contract: the agreement mentions the duration of the contract, that is, the start and end date of the contract. It should also determine the right of one of the parties to terminate the contract, including the circumstances under which the contract may be terminated. It should be noted that the 1993 Trade Agents Regulations create certain obligations and rights for those defined in the regulations as trade agents in their respective EU countries. If the intention is that the parties will not have a relationship covered by these regulations, this document should not be used. This sales agency agreement is concluded as of [the agreement. Date] between the following companies, collectively referred to as “parties,” and considered effective: a sales agent works as an independent contractor for a company and promotes the company`s products or services for a fee for each sale. The contract between a sales agent and an organization is similar to an independent general contract agreement.
The contract stipulates that the salesperson is not an employee, official or co-owner of the company. Commissions vary depending on the size of the representative`s sales during each salary period. The distribution contract defines the products or services and the commercial responsibility to market the company`s products or services in accordance with the terms of the agreement. A section describes the actions that constitute a termination of the contract. If the agent is required to provide a license or authorization for the conclusion of sales, the agreement may indicate the terms of renewal of the licence or authorization. Even if the distributor works as an independent contractor, the contract may require the representative to commit to a regular sales quota. Therefore, the agent must reach his quota to obtain his status with the company. Additional requirements may be included in the contract, such as .B the seller`s obligation to undergo training or maintain a vehicle. The agreement may require the salesperson to compensate the company for the damage caused by his actions. Annual target: The annual turnover rate implies the minimum revenue target that the agent must achieve for the year. PandaTip: This section of the sales agency agreement model describes the process and procedure for sales and post-sale activities, including offers, support and collection of unpaid fees by end-users.
When a sale is made, a sales agent receives a commission, that is, a percentage of the total amount of the sale. As a general rule, it is concluded only if the company receives payment for the sale or if it charges the debitor. The point-of-sale contract defines the commission structure, including the basis of the commission and the formula used to calculate the agent`s commission. The contract provides for a payment period explaining the procedures for allocating commissions. Most agent contracts contain a provision that the seller has the right to obtain monthly commissions and full inspections of his sales history. This document can be used to create a distribution agency relationship between an agent and a principal. In this way, an agent can earn commissions for the sale of the client`s goods.