Sales Agency Agreement

This document can be used to create a Sales Agency relationship between an Agent and Principal. This will allow an Agent to earn commission on sales of the Principal's goods.

The document can be amended to reflect differing commission rates, right and duties as well as:

• exclusivity for the agent
• defined territories and customer groups in which the Agent will operate
• exclusion of customers or customer types
• a right of first refusal on new products
• responsibility for sales and marketing
• agent expenses
• minimum annual sales targets

It should be noted that the Commercial Agents Regulations 1993 create certain duties and rights for those defined within the regulations as commercial agents in their respective EU countries. If it is intended that the parties do not have a relationship which falls within those regulations this document should not be used.

Finally, it should also be noted that there is a distinction between an agency relationship, contractor relationship and employment. Typically agent's drive business to their principal and are paid commission for any completed sales. Contractors are paid a set figure for the provision of a service. Employees are employed by contract to work for their employer and are paid a wage. However, the distinction can often be blurred and a court will determine whether a relationship falls into either an employment, contractor or agency relationship based on the reality of the situation, notwithstanding any documents that may describe the relationship otherwise. This may take into account factors including but not limited to the degree to which the principal can order the agent to undertake any action or work set hours and any regular payments which may fall outside the category of commission and may be considered a retainer or wage.

How this document is to be used

Both parties should read the document. Any schedules requesting further details (for instance defining Products, Territories, Customer Group, Excluded Customers or Minimum Sales) should be completed if applicable. Any agreed marketing plan should also be attached.

If the parties understand and accept the terms of the document they should each sign it and retain a copy. Where either party is an incorporated entity, a person with the authorisation to sign agreements on the companies behalf should be the signatory.

Any Applicable Law

Commercial Agents Regulations 1993

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.