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.
Sales Representative Agreement Template: Term & Territory
- Typical length: 4-6 pages
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Sales Representative Agreement Template
This Sales Representative Agreement (“Agreement”) is entered into on [Date], by and between:
Company: [Company Name]
Address: [Address]
Contact: [Phone, Email]
Sales Representative: [Full Legal Name / Business Name]
Address: [Address]
Contact: [Phone, Email]
Together referred to as the “Parties.”
1. Appointment
The Company appoints the Sales Representative to promote, market, and sell the Company’s products/services within the defined territory under the terms of this Agreement.
2. Territory
The Sales Representative’s sales territory shall include: [Specify geographic area or customer segment].
The Representative shall not sell outside the territory without prior written consent of the Company.
3. Duties and Responsibilities
The Sales Representative agrees to:
-
Actively market and sell the Company’s products/services.
-
Follow Company policies and pricing guidelines.
-
Submit regular sales reports and forecasts.
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Maintain accurate records of customer contacts and sales activities.
Actively market and sell the Company’s products/services.
Follow Company policies and pricing guidelines.
Submit regular sales reports and forecasts.
Maintain accurate records of customer contacts and sales activities.
4. Commission and Compensation
-
The Sales Representative shall receive a commission of [X%] of net sales.
-
Commissions shall be paid monthly, within [X days] of the end of each month.
-
No commission will be paid on returned, canceled, or unpaid orders.
The Sales Representative shall receive a commission of [X%] of net sales.
Commissions shall be paid monthly, within [X days] of the end of each month.
No commission will be paid on returned, canceled, or unpaid orders.
5. Exclusivity and Non-Compete
-
☐ Exclusive Agreement: The Sales Representative shall not represent or sell competing products.
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☐ Non-Exclusive Agreement: The Sales Representative may represent other companies with prior disclosure to the Company.
☐ Exclusive Agreement: The Sales Representative shall not represent or sell competing products.
☐ Non-Exclusive Agreement: The Sales Representative may represent other companies with prior disclosure to the Company.
6. Confidentiality
The Sales Representative shall not disclose or use the Company’s confidential information except as required to perform under this Agreement.
7. Intellectual Property
All trademarks, logos, and marketing materials remain the sole property of the Company. The Sales Representative may only use them with written permission.
8. Term and Termination
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This Agreement shall commence on [Start Date] and continue until terminated by either party with [X days] written notice.
-
Immediate termination may occur for breach of confidentiality, fraud, or gross misconduct.
This Agreement shall commence on [Start Date] and continue until terminated by either party with [X days] written notice.
Immediate termination may occur for breach of confidentiality, fraud, or gross misconduct.
9. Independent Contractor Status
The Sales Representative is an independent contractor and not an employee, partner, or agent of the Company. No employee benefits shall apply.
10. Governing Law
This Agreement shall be governed by the laws of [State/Country].
11. Entire Agreement
This document constitutes the entire agreement between the Parties and supersedes all prior negotiations or agreements.
Signatures
Company Representative: ____________________________ Date: _________
Name/Title: _________________________________________
Sales Representative: ____________________________ Date: _________
Name/Title: _________________________________________
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Sales Representative Agreement Template: Term & Territory
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Frequently asked
Sales Representative Agreement Template — quick answers
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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