2 parties      Duration, renewal and termination      Fees and targets      Intellectual property

What is a Sales Agency agreement?

A Sales Agency Agreement is a contract between a principal (typically a manufacturer or supplier) and an agent (sales representative or agency) who acts on behalf of the principal to promote, market, and sell the principal’s products or services to customers. This agreement establishes the terms and conditions under which the agent will represent the principal and earn commissions or other compensation for their sales efforts.

Tips

• Include Sales Targets: Establish realistic sales targets or quotas for the agent to meet. Clearly define the consequences for failing to meet these targets, such as adjustments to commission rates or termination of the agreement.
• Address Territory and Exclusivity: Specify the geographic territory or market where the agent is authorized to sell the principal’s products or services. Clarify whether the agent has exclusive or non-exclusive rights to represent the principal.