Business OS
Finance & AccountingFinancing

Sales Agency Agreement

This Sales Agency Agreement template is for businesses appointing an agent to sell products or services on their behalf. It outlines the terms of the agency, commission, and responsibilities of both parties. This should be used when establishing a formal sales representation.

Updated 15d ago
salesagencyagreementcommissionrepresentativecontractSME

{{company_name}}

{{company_address}}

Phone: {{phone}} | Email: {{email}} | Web: {{website}}

Sales Agency Agreement

Sales Agency Agreement

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

SALES AGENCY AGREEMENT

This Sales Agency Agreement ('Agreement') is made and entered into as of {{date_of_agreement}}

BY AND BETWEEN:

{{company_name}} (hereinafter referred to as the 'Principal'), a company duly incorporated under the laws of {{country_of_incorporation}}, with its principal place of business at {{company_address}}.

AND

{{agent_name}} (hereinafter referred to as the 'Agent'), [Pty Ltd/Individual] duly incorporated/residing at {{agent_address}} [and operating under registration number {{agent_registration_number}} if applicable].

1. APPOINTMENT OF AGENT

The Principal hereby appoints the Agent as its non-exclusive/exclusive sales agent to promote and solicit orders for the sale of the Principal's products/services (hereinafter referred to as 'Products') within the designated territory of {{territory}} (hereinafter referred to as the 'Territory').

The Agent accepts such appointment and agrees to use its best endeavours to promote the sale of the Products in the Territory during the term of this Agreement.

2. TERM AND TERMINATION

This Agreement shall commence on {{start_date}} and shall continue for a period of {{term_duration}} (e.g., one year), unless terminated earlier in accordance with the provisions of this Agreement.

Either party may terminate this Agreement by giving {{notice_period}} days' written notice to the other party. In the event of a material breach of this Agreement by either party, the non-breaching party may terminate this Agreement immediately upon written notice.

3. AGENT'S RESPONSIBILITIES

The Agent shall:

a. Diligently promote and solicit orders for the Products within the Territory.

b. Provide regular reports to the Principal on sales activities, market conditions, and competitor activities, as reasonably requested.

c. Maintain a high standard of business ethics and represent the Principal in a professional manner.

d. Not engage in any activity that conflicts with the interests of the Principal.

e. Conduct regular meetings/calls with the Principal to discuss sales performance and strategies.

4. PRINCIPAL'S RESPONSIBILITIES

The Principal shall:

a. Provide the Agent with necessary sales materials, product information, and training.

b. Process and fulfill all orders generated by the Agent in a timely and efficient manner.

c. Pay commissions to the Agent as stipulated in this Agreement.

d. Provide reasonable support and assistance to the Agent in its sales efforts.

5. COMMISSION

The Principal shall pay the Agent a commission of {{commission_percentage}}% of the net sales price of all Products sold through the Agent's efforts in the Territory.

Commissions shall be calculated on {{calculation_basis}} (e.g., invoiced sales, paid sales) and paid to the Agent within {{payment_days}} days of the end of each calendar {{payment_period}} (e.g., month, quarter).

The Agent shall be entitled to commissions on all orders placed and accepted by the Principal during the term of this Agreement, even if delivery or payment occurs after termination, provided the order was genuinely procured by the Agent during the Term.

6. INDEPENDENT CONTRACTOR

The Agent is an independent contractor and not an employee, partner, or joint venture of the Principal. The Agent shall be responsible for all its own taxes, insurance, and other obligations related to its business operations.

7. CONFIDENTIALITY

Both parties agree to keep confidential all proprietary and confidential information disclosed by the other party during the term of this Agreement and for a period of {{confidentiality_period}} thereafter.

8. GOVERNING LAW AND DISPUTE RESOLUTION

This Agreement shall be governed by and construed in accordance with the laws of {{governing_country}}.

Any dispute arising out of or in connection with this Agreement shall be resolved through negotiation in good faith. If the dispute cannot be resolved through negotiation, it shall be referred to mediation in accordance with the rules of {{mediation_body}}. If mediation fails, the dispute shall be submitted to the exclusive jurisdiction of the courts of {{governing_country}}/arbitration in {{arbitration_location}}.

9. ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior discussions, negotiations, representations, and agreements, whether oral or written.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

___________________________

Principal: {{company_name}}

By: ________________________

Name: {{principal_signatory_name}}

Title: {{principal_signatory_title}}

Date: {{principal_signature_date}}

___________________________

Agent: {{agent_name}}

By: ________________________

Name: {{agent_signatory_name}}

Title: {{agent_signatory_title}}

Date: {{agent_signature_date}}

Related templates