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This is a sample marketing agreement between two parties. The first party, the Principal, produces a range of products and wishes to extend its sales in a specific area (the Territory) where it has little existing customer base or marketing experience. The second party, the Agent, has extensive marketing experience in the Territory and is willing to act as the Principal's marketing agent for the products listed in the agreement.
The appointment of the Agent as the Principal's agent in the Territory is made subject to specific terms and conditions. The Principal shall not appoint any other person or company as the agent for the promotion or sale of the Products in the Territory or as a distributor of the Products in the Territory. However, the Principal shall be entitled to make sales of the Products to customers in the Territory whether or not they have been introduced to the Principal by the Agent.
The Agent's duties include using best endeavours to promote and market the Products in the Territory, seeking orders for the Products in the Territory and generally assisting the Principal in the sale of the Products in the Territory. The Agent shall not be entitled to sell or enter into any contracts for the sale of the Products on behalf of the Principal or bind the Principal in any way, unless authorised to do so in writing on a case-by-case basis. The Agent shall also conduct the promotion and marketing of the Products in the Territory with all due care and diligence and maintain good relations with customers and potential customers in the Territory.
The agreement sets out various other terms and conditions, including the Principal's obligation to supply the Products to the Agent, the pricing of the Products, the commission payable to the Agent, the delivery and transport of the Products, and confidentiality and intellectual property rights.
The agreement is valid for a period of one year from the date of the agreement and each subsequent consecutive period of 12 months during the period of the agreement. The agreement can be terminated by either party on giving six months' notice in writing to the other party or for a material breach of the agreement by either party.
This marketing agreement is an important document that clarifies the terms and conditions of the relationship between the Principal and the Agent. It provides a framework for the promotion and sale of the Products in the Territory and ensures that the interests of both parties are protected.
To use this Marketing Agreement document, please follow the steps below:
1. Familiarise yourself with the parties involved in the agreement. The Principal is [PARTY_1_NAME] whose principal place of business is at [PARTY_1_ADDRESS_SINGLE_LINE], while the Agent is [PARTY_2_NAME] whose principal place of business is at [PARTY_2_ADDRESS_SINGLE_LINE].
2. Understand the reason for the agreement. The Principal is looking to extend its sales area to [TERRITORY], a territory in which it has little existing customers and little marketing experience. The Agent, who has extensive marketing experience in [TERRITORY], is willing to act as the Principal's marketing agent for the products listed in Schedule 1 to this Agreement in the Territory.
3. Pay attention to the definitions provided in the agreement. This includes important terms such as Business Day, Force Majeure, Intellectual Property, Net Invoice Price, Products, Quarter, Restricted Information, Territory, and Year of this Agreement.
4. Note the appointment of the Agent. The Principal hereby appoints the Agent as its agent in the Territory for the promotion of, and solicitation of customers for, the Products, subject to the terms and conditions of this Agreement.
5. Understand the duties of the Agent. The Agent shall use its best endeavours to promote and market the Products in the Territory and to seek orders for the Products in the Territory, and generally to assist the Principal in the sale of the Products in the Territory, but the Agent shall not be entitled to sell or to enter into any contracts for the sale of the Products on behalf of the Principal, or to bind the Principal in any way unless the Agent has previously been specifically authorised in writing to do so on a case to case basis.
6. Pay attention to the restrictions imposed on the Agent. The Agent shall not solicit any orders for the Products from any person in the Territory if the Agent knows or has reason to believe that the Products concerned will be resold outside the Territory or from any person outside the Territory.
7. Take note of the Principal's rights. The Principal shall be entitled to make sales of the Products to customers in the Territory whether or not they have been introduced to the Principal by the Agent.
8. Understand the consequences of breaching the agreement. The agreement includes clauses for termination, indemnity, and limitations of liability.
By following these steps, you should be able to use this Marketing Agreement document effectively.