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Sales Representative Commission Agreement


Draft an Agreement between Company and Sales Rep on Commission. Protect your company's interests. Get expert legal advice.

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Document Description

This Sales Representative Commission Agreement is a legally binding document that outlines the terms and conditions between a company and a salesperson who will act as a representative for the company's products. The agreement sets out the products the salesperson will sell and the territory within which they will be sold. The salesperson is prohibited from selling the products outside the specified territory.

The agreement also covers the salesperson's compensation, which is a commission based on each successful sale they make. The commission percentage is fixed and will be paid to the salesperson from the first sale date to the date falling a specified number of months after that date. The payment of the commission will be made after the company has received payment in full from the client in respect of the sale agreement. The agreement also covers the payment frequency and the certification of the rate or amount.

The salesperson agrees to work diligently to secure business for the company and agrees not to make any commitments or enter into any legal agreement without the prior written consent of the company. The salesperson is also required to keep all of the company's business secrets confidential and not disclose any information regarding the company's clients, manufacturers, suppliers, finances, research, development, or manufacturing processes.

The agreement also outlines the obligations of the company, which include providing the salesperson with any promotional items used to acquire sales and furnishing a sales agreement template for use by the salesperson in all sales of the products. The company is also responsible for negotiating and accepting the terms of any legal agreement with clients.

In the event that the salesperson fails to return any property of the company taken to conduct any selling activity, the salesperson will be billed for the property at a sum equivalent to 100 per cent of the cost. The salesperson is prohibited from carrying any additional competing lines without the full knowledge and consent of the company.

In conclusion, this Sales Representative Commission Agreement is an essential document that clarifies the responsibilities and expectations of both the company and the salesperson. The agreement helps to establish a clear understanding of the salesperson's remuneration, sales scope, territory, obligations, and confidentiality requirements, ensuring a smooth and effective sales process.

How to use this Document?

1. Start by entering the current date and the name, jurisdiction, and identification number of both parties involved. It's essential to ensure that all the necessary details are included.

2. The agreement outlines the scope and parameters for selling the product(s). The salesperson will need to agree to abide by these conditions, including obtaining written approval before using any promotional materials, the defined territory, and not selling outside of it.

3. Next, the remuneration of the salesperson is discussed. The commission percentage payable, based on the contract price under each sale agreement, will be paid from the first sale date until the date falling a specified number of months after the first sale date. Any payment of commission in respect of any sale agreement will be made by the company within the specified number of days after the contract price is received in full. It's important to note that no commission will be payable for any successful sales after the specified number of months from the first sale date.

4. The salesperson's obligations are outlined, including diligently working to secure business for the company, not making any representations or commitments without the company's prior written consent, not having the capacity to enter into legal agreements on the company's behalf, and not carrying additional competing lines without the company's consent. Additionally, the salesperson must keep all confidential information related to the company's business secrets confidential during and after the term of this agreement.

5. The agreement can then be signed by both parties involved.

Using our sales representative commission agreement can help ensure that both parties involved understand their obligations and are compensated appropriately. It's a useful tool for any business looking to establish a commission-based sales structure.



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