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Sales Representative Agreement Template: Term & Territory
SALES REPRESENTATIVE AGREEMENT FAQ
What is a Sales Representative Agreement?
A Sales Representative Agreement is a legal document that sets the terms between a company and an independent sales representative, detailing responsibilities, commission rates, and territory assignments.
Why is a Sales Representative Agreement important?
It prevents disputes by clarifying payment terms, sales quotas, territories, and intellectual property rights. It also protects confidential company information and outlines termination conditions.
When should you use a Sales Representative Agreement?
Use it whenever hiring independent sales representatives to sell products or services, whether regionally, nationally, or internationally. It is particularly important for businesses relying on commission-based sales teams.
What should a Sales Representative Agreement include?
It should cover roles and responsibilities, commission structure, territory, non-compete or exclusivity clauses, reporting requirements, termination terms, and governing law.
Is a Sales Representative Agreement legally binding?
Yes. Once signed by both parties, it becomes enforceable and can be used in legal proceedings to resolve disputes over commissions, performance, or intellectual property.
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