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10+ Sales Agency Contract Samples

The sales department is a group in a company that convinces and pitches the customers to look into their products or services and avail it. Often, sales agents are independent workers who earn commission based on the dollar amount they sell. Some sales agents work for sales agencies who contract out their workers. The Sales Agency Contract or Agreement is a document that are used when a principal engages a sales agent to sell a product or service in the principal’s behalf. A sales agent also has authority to negotiate and enter into agreements on the principal’s behalf. Any agreement entered into via the agent will be legally binding. With the importance of this legal document, it should be a requirement to know everything that must be included: terms and conditions, people/parties involved, included dates and all the other matters that must be tackled in the document.

10+ Sales Agency Contract Samples

The sales department is a group in a company that convinces and pitches the customers to look into their products or services and avail it. Often, sales agents are independent workers who earn commission based on the dollar amount they sell. Some sales agents work for sales agencies who contract out their workers. The Sales Agency Contract or Agreement is a document that are used when a principal engages a sales agent to sell a product or service in the principal’s behalf. A sales agent also has authority to negotiate and enter into agreements on the principal’s behalf. Any agreement entered into via the agent will be legally binding. With the importance of this legal document, it should be a requirement to know everything that must be included: terms and conditions, people/parties involved, included dates and all the other matters that must be tackled in the document.

Writing this from scratch would be a very hard thing especially if you only have a little to no knowledge about the things that will be put in this document. You don’t have to worry about anything, Sample Templates got you in making your Sales Agency Contract from drafting it to making it into your final document. We got templates that you can avail or refer to, this article also provides you with important and relevant information on how to make your Sales Agency Contract.

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11. Sales Agency Directive Contract

What Should Be Included in a Sales Agency Contract?

Sales agent can be of great help to businesses and other enterprises to be a source for additional income and profit in the market. This could also provide the company or business a growth, increase in sales and promote the goods and services. The sales agent are given the authority to have negotiations and enter agreements in behalf of the principal. Any agreement that will be entered into it will be legally binding to them. To be paid with their services, the sales agent will get a set fee known as commission.

Types of Sales Agency Agreements

Exclusive Agency Agreement/Contract

This means that the agency relationship is only established with the agent who agrees to pitch for the sale of goods and services. This type of sales agency can also be limited by geographic location.

Non-Exclusive Agency Agreements

This type of agreement is a general agreement, meaning, you can appoint more than one sales agent and commission is payable to the agent who finds a buyer. Sometimes agreements can specify that the agreement is Exclusive for a period of time (e.g. 1 year) and after the period has elapsed, the agreement becomes non-exclusive.

Elements That Should Be Included In Sales Agency Agreements

Commission Payable

The agreement should specify the exact fees and commission structure for providing sales agent services. This amount will generally exclude GST. If both parties agree to use a commission structure, this must be clear from the terms of the agreement. Using example calculations can assist with clarity.

Termination

Considering when the agreement will be terminated is also important as it defines circumstances that will result in the ending of the agreement between you and the agent. For example, termination should be an option where there is:

1. Breach of any of the terms in the agency agreement;
2. Non-payment of debts or liabilities by either party; or
3. If one of the parties appoints an administrator or goes into liquidation.

You should also consider the term (e.g. 5 years) of the agreement and whether it is fixed (agreement terminates at the expiration of the term) or flexible. If you decide on a flexible term, the termination clause must provide for how and when the agreement can be terminated.

Confidentiality

Confidentiality clauses are important as they protect confidential information disclosed to agents. At times it is necessary to provide an agent with confidential information relating to a product or service. Have a think about the confidential information your business has and ensure your agreement adequately restricts the disclosure of such information.

Trademarks and Logos

Additionally, ensure your agreement also restricts the use of your intellectual property (trademarks, logos, designs, trade secrets patents etc.). Consider what intellectual property your business has and ensure your agreement outlines how and when the agent can use your intellectual property.

No Partnership

Your agreement should feature a statement that the parties to the agency agreement are in no way partners or joint ventures and have not entered into an employee-employer relationship. Whilst the agency agreement will specify the powers granted to the agent, a no partnership clause ensures that the specific relationship created is clear.

FAQs

Looking into the available resources or materials online that could help you in the process of making your Sales Agency Contract is a wise thing to do, you are not just saving effort and time, but also making the best out of your project. For other contract or agreement templates, Sample Templates also offer you Real Estate Sales Agreement, Sales Target Account Plan, Enterprise Sales Account Plan, Restaurant Sales Agreement, Software Sales Business Plan, Sales Expense Budget, Real Estate Investment Contract, Start-Up Investments Contract, Company Investment Contract, Debt Investment Contract, Cooperative Investment Contract, Security Investment Contract, Services Investment Contract, Subcontract Confidentiality Contract, Constructor Subcontractor Agreement, Draft Investment Contract and many in the storage just for your convenience.