A Sales Agency agreement is a contract between a sales agent and a company. A sales agency agreement is necessary when a company hires a sales agency to promote and sell their goods and services on their behalf. The motive behind this sales agency agreement is to safeguard the interest of both the company and sales agency. It outlines the sale and payment terms as well as the duties of the sales agent. It is a legally binding contract that that can be used in the court of law for any disputes between the agent and the company.
Major elements of Sale Agency Agreement are as follows:
The sales agency agreement includes all the terms and condition related to the appointment of a sales agent. Such as an agent appointed cannot sell other company’s product in a particular geographical area or territory.
This agreement also discloses all the payment related terms as sales agents are generally paid in the form of commission. In addition to this, the payment terms also specify the payment time of the date of the commission earned.
The term of sale include the following things:
The sales agency agreement also has some duties and obligation mentioned that shall be followed by the agent:
The sales agency agreement also clearly states the terms and condition relating to the termination of the contract. In other words, the agreement shall show the contract duration. In addition to this, the sales agency agreement also mentions out the scenarios under which either of the parties can terminate the contract.