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.

 2 parties      Supplier order        Renewal and termination        Hardship      

What is a Long term supply agreement?

A Long-Term Supply Agreement is a contract between a supplier and a buyer that establishes terms and conditions for the supply of goods or services over an extended period of time. Unlike short-term supply agreements, which typically cover shorter periods or specific transactions, long-term agreements provide for a continuous and predictable supply relationship between the parties.

A Long-Term Supply Agreement provides both parties with stability, predictability, and assurance of supply over an extended period, allowing for better planning, cost control, and risk management.

Tips

• Maintain Flexibility: Build flexibility into the agreement to accommodate changes in circumstances, market conditions, or business needs.
• Clarify Supply Quantity and Schedule: Clearly specify the quantities of goods or services to be supplied and the schedule for delivery or performance.

 2 parties      Products       Prices list     Renewal and termination    Territory perimeter     Minimum purchase requirement

What is a Distribution agreement?

A Distribution Agreement is a legal contract between a supplier or manufacturer of goods and a distributor who agrees to sell and distribute those goods to customers or end-users. This agreement outlines the terms and conditions governing the relationship between the parties, including rights, obligations, and responsibilities regarding the distribution of the products.

Tips

• Review and Revise Regularly: Regularly review and revise the Distribution Agreement to ensure it remains up-to-date with changes in business needs, market conditions, and legal requirements. Consider seeking legal advice to review and validate the agreement periodically.
• Protect Intellectual Property Rights: Address ownership and use of intellectual property rights associated with the products, including trademarks, patents, copyrights, and trade secrets. Specify any licensing or usage rights granted to the distributor.