There can also be disadvantages to having an agency contract. The main problem is that the customer can be held responsible for a possible fault of the agent. If the agent does something illegal or makes a mistake in representing the client, the client can be held liable and presumed to have committed the act. For example, if the agent signs a contract on behalf of the company and the contract has not been read thoroughly by the client, he may be held responsible for the terms of the contract. You will need a commercial agency contract if you want to hire an agent to sell your products in a geographic area, territory or on an exclusive or non-exclusive basis. 6. Pay the agent commissions for sales of existing customers for a period of ____ (_) months after either party terminates this Agreement. PandaTip: You and your colleague at the sales agency can use the following fields to sign this agency contract template electronically. The contract may also limit the agent to the sale only to a specific segment of the customer.
This varies depending on the type of advertising and marketing work, but each agent may have an exclusive territory. When a sale takes place, the sales agent receives a commission equal to a certain percentage of the sales amount. This is only completed if the company is paid from the sale or invoices its customer. The officer is responsible for defining the structure of the commission, including the commission formula. Yes, in this agreement you can set minimum sales targets. Under no circumstances may the Sales Agency make misleading or false statements regarding the Products or the Company in this Agency Agreement. Protect yourself if you hire an agent to sell your products or if you are appointed as a commercial agent with this agency contract. Use this Agreement to appoint an agent on an exclusive or non-exclusive basis. This simple agent contract contains everything necessary to protect a principal with the product for sale as well as the commercial agent designated to ensure that both comply with the law. It includes the basis of the appointment, the geographical areas or territory, the obligations of the client and the agent, the minimum turnover objectives, the commission and the termination of the agency contract.
Sometimes an agency contract comes from necessity. If the company is facing a legal case, it is necessary to have a qualified lawyer to represent the company. Hiring a lawyer allows them to work for the company. This Commercial Agent Agreement is between the following companies, collectively referred to as the “Parties”, and is effective as of [Date]: PandaTip: This template clearly defines the Sales Agency`s responsibilities with respect to this Agreement. These tasks include reaching an annual quota, carrying out promotional and other promotional activities, and providing pre-sales customer support. 5. Inform the sales manager if they represent or plan to represent another company. Under no circumstances may the sales representative represent a competitive business or product line within or outside the designated sales territory. All notices relating to this Agency Agreement must be sent in person or by registered mail to the following addresses.
A commercial agency contract defines what the conditions are when a commercial agent acts as an independent contractor for a company.3 min read Many companies include certain territories within a narrowly defined target market. The contract may stipulate that any sale must be made in a specific geographical area, thus limiting the sale of each product in a specific region. A sales territory can also consist of a specific segment of potential customers. Depending on the type of marketing and advertising work, each agent may have an exclusive territory. The company sets prices and fees for each sale. The contract sets out the guidelines for accepting a sale negotiated by the sales agent. Therefore, if the sales agent does not make an acceptable sale in accordance with the Company`s policies, the Company may reserve the right to refuse a sale. The contract contains a clause stipulating that the company has the right to refuse any order. The Company will regularly carry out all commercial training required for the Sales Agency, as well as for the Agency`s staff, if deemed necessary. This agreement may be terminated under one of the following conditions: within 30 days of the entry into force of this agency contract, the company may allocate to the sales agency an annual quota considered fair and reasonable, taking into account previous sales, the economic state of the territory and any additional market situation in the territory. 4.
Inform the sales manager of any issues affecting the company`s customers in the sales territory. The Sales Agency is authorized to use the Products in accordance with this Agreement and waives all acquired rights in the event of termination. A commercial agency contract is a document that requires a commercial agent to negotiate and conclude a sales contract on behalf of a principal (supplier). It establishes the basis for the appointment of the agent, the obligations of the client and the agent, the minimum sales targets, the amount of the commission and the processes of payment and termination of the contract. Both parties agree not to transfer this Agreement or any obligation related to this Agreement without prior written consent. This Agreement is binding on the parties and their successors and assigns. A supplier may prevent an agent from selling products competing with another company in the specified territory during the term of the agreement or for a certain period after the termination of the agreement. A supplier may also prevent the agent from exceeding an expenditure limit within the specified period of time and may require an agent to make a security payment that protects the supplier in the event that a buyer fails to make a payment. On the date of termination, this Agreement will remain in effect for an additional 3 years, unless one of the parties receives a request for termination. 7. Give the Company 30 days` notice if the agent intends to terminate this Agreement. PandaTip: Since the sales agency is only allowed to sell the listed products in a particular region, it is important to clearly define that region.
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