Sales Representative Commission Agreement

The Sales Representative Commission Agreement is a document that outlines the terms and conditions between a company and a salesperson. This agreement is important as it establishes the relationship between the two parties and ensures that both parties are aware of their rights and responsibilities.

 

The entire document consists of six sections:

 

1. Sales Scope: This section outlines the products that the salesperson will be selling on behalf of the company. It also mentions that the company will provide promotional items and a sales agreement template for the salesperson to use.

 

2. Remuneration of Salesperson: This section explains how the salesperson will be compensated for their services. It states that the salesperson will receive a commission for each successful sale made, based on a percentage of the contract price. The terms and conditions for payment are also mentioned.

 

3. Obligations of Salesperson: This section outlines the responsibilities of the salesperson, which include working to secure business for the company and not entering into any legal agreements on behalf of the company.

 

4. Termination of Agreement: This section explains the conditions under which either party can terminate the agreement. It also mentions that the salesperson will receive a commission on all successful sales made before the termination date.

 

5. Miscellaneous: This section includes various miscellaneous provisions, such as the salesperson being an independent contractor, the method of communication for notices, and the cumulative nature of the rights and remedies provided in the agreement.

 

6. Governing Laws and Jurisdiction: This section specifies the governing laws and jurisdiction that will apply to the agreement.

 

Each section of the document is important as it addresses specific aspects of the agreement and ensures that both parties are on the same page. The Sales Representative Commission Agreement is a crucial document for establishing a clear and mutually beneficial relationship between the company and the salesperson.

How to use this document?

1. Enter the necessary information: Fill in the names and addresses of both the company and the salesperson in the agreement. This will ensure that both parties are clearly identified.

2. Define the sales scope: Specify the products that the salesperson will be selling for the company. Also, mention if there is a specific territory in which the salesperson will operate.

3. Determine the remuneration: Agree on the commission percentage that the salesperson will receive for each successful sale. Clarify the definition of a successful sale and the payment terms.

4. Outline the obligations: Clearly state the responsibilities of the salesperson, such as working to secure business for the company and not entering into any legal agreements on behalf of the company.

5. Understand the termination conditions: Familiarize yourself with the conditions under which either party can terminate the agreement. Note that the salesperson will receive a commission on all successful sales made before the termination date.

6. Consider the miscellaneous provisions: Take note of the miscellaneous provisions, such as the salesperson being an independent contractor and the method of communication for notices.

7. Be aware of the governing laws and jurisdiction: Understand the governing laws and jurisdiction that will apply to the agreement.

By following these steps, you can effectively use the Sales Representative Commission Agreement to establish a clear and mutually beneficial relationship between the company and the salesperson.