Protect your business interests with a professionally crafted sales agency agreement that defines clear terms, establishes commission structures, and sets precise territorial boundaries.
A Sales Agency Agreement is a legally binding contract between a company (principal) and a sales agent that establishes the terms under which the agent will sell the company's products or services. This agreement is crucial for defining commission structures, sales territories, and mutual obligations.
This template provides a structured framework for companies looking to engage sales agents or agencies. It clearly outlines the scope of authority, commission terms, and performance expectations. The agreement protects both parties by establishing clear boundaries and responsibilities while ensuring compliance with relevant laws and regulations.
Use this template when:
Follow these steps to customize your agreement:
This agreement is commonly used in:
Follow these guidelines for an effective agreement:
Consider these variations based on your needs:
Companies have successfully used this template to:
The commission structure should clearly define the percentage rate, calculation basis, payment timing, and any conditions affecting commission eligibility.
Yes, but it should be done through a formal amendment to the agreement, signed by both parties.
Sales targets are usually set based on market potential, historical data, and mutual agreement between the principal and agent.
Standard notice periods typically range from 30 to 90 days, depending on the relationship's complexity and market conditions.
Enforceability varies by jurisdiction but generally requires reasonable limitations in terms of duration, geography, and scope.