A sales representation agreement template is a legal document that outlines the terms and conditions of a business relationship between a company (principal) and an individual or entity (sales representative) who will be responsible for promoting and selling the company’s products or services. This template serves as a contract that protects the interests of both parties involved.
Key Elements of a Sales Representation Agreement Template
A well-crafted sales representation agreement template should include the following essential elements:
1. Parties to the Agreement
Identify the Principal: Clearly state the name and legal status of the company (principal) entering into the agreement.
Identify the Sales Representative: Specify the name and legal status of the individual or entity (sales representative) who will be acting on behalf of the principal.
2. Territory
Define the Geographic Area: Clearly delineate the specific territories or regions where the sales representative will be authorized to operate and solicit business on behalf of the principal.
3. Term of the Agreement
Specify the Duration: Indicate the start date and duration of the agreement, whether it’s a fixed term or terminable at will.
4. Products or Services
List the Offerings: Clearly define the specific products or services that the sales representative will be authorized to sell or promote.
5. Sales Representative’s Duties and Responsibilities
Outline Obligations: Specify the sales representative’s duties, such as prospecting for new clients, negotiating sales, providing customer service, and complying with the principal’s policies and procedures.
6. Commission Structure
Detail Compensation: Clearly outline the commission structure, including the percentage of sales or other compensation methods that will be paid to the sales representative.
Reimbursement: Specify the expenses that the principal will reimburse to the sales representative, such as travel costs, marketing expenses, and other business-related expenses.
8. Confidentiality
Protect Proprietary Information: Include a confidentiality clause to protect the principal’s proprietary information and trade secrets.
9. Termination
Grounds for Termination: Specify the circumstances under which either party can terminate the agreement, such as breach of contract or material default.
10. Governing Law and Dispute Resolution
Choose Jurisdiction: Specify the governing law that will apply to the agreement and the jurisdiction where disputes will be resolved.
Design Elements for a Professional Sales Representation Agreement Template
To create a sales representation agreement template that conveys professionalism and trust, consider the following design elements:
Clear and Concise Language: Use plain, straightforward language that is easy to understand. Avoid legal jargon that may confuse the parties involved.
Consistent Formatting: Maintain consistent formatting throughout the document, using headings, bullet points, and numbering to improve readability.
Professional Layout: Choose a professional font and layout that enhances the overall appearance of the template.
Use of White Space: Incorporate white space to improve readability and create a visually appealing document.
Legal Disclaimer: Include a legal disclaimer at the end of the template to indicate that the document is a template and should be reviewed by an attorney before signing.
By carefully considering these elements, you can create a sales representation agreement template that is both professional and legally sound.
