Sales Agency Contract Agreement
This Sales Agency Contract Agreement (hereinafter referred to as “Agreement”) is made this ____ day of ____________, 20__, between _________ (hereinafter referred to as “Principal”) and ___________ (hereinafter referred to as “Agent”).
Whereas,
(A) The Principal is engaged in the business of _________________ and desires to appoint __________ as its agent to sell certain products manufactured by the Principal in accordance with the provisions of this Agreement; and
(B) The Agent is desirous of being appointed as an agent of the Principal.
Now, Therefore, the parties hereby agree as follows:
1. Scope of Agency
The Principal hereby appoints Agent to sell and distribute the Principal’s products, namely ________________ in the territory as defined herein. The territory for the purpose of this Agreement shall include ___________. During the term of this Agreement, the Agent shall devote its best efforts to market, advertise, distribute and sell the Principals products in the said territory of the Agreement.
2. Responsibilities of Agent
The Agent shall identify potential customers in the said territory and promote the sale of the Principal’s products. The Agent shall use its best efforts to create a demand for the Principal’s products by building a customer base. The Agent shall also promote, advertise and distribute the Principals products in the said territory. The Principal shall also undertake the responsibility to develop and maintain a sales force in the said territory.
3. Remuneration to Agent
The Agent shall be entitled to a commission of _____% of the invoice price of each sale made by it of the product units during the term of this Agreement, subject to payment of commission only on those product units actually sold. The commission shall be payable not later than _______ days after receipt of payment by the Principal from the customer.
4. Duties and Obligations of the Principal
The Principal shall provide the Agent with such support as is necessary for it to successfully market, advertise and distribute the products in the said territory. The Agent shall also provide the Agent with samples, literature, marketing aids and other support necessary for it to actively and successfully market and distribute the products in the said territory.
The Principal shall also provide the Agent with all necessary technical and administrative support. The Principal shall also periodically review the performance of the Agent and provide it with suitable guidance and constructive advice.
5. Expenses
Any costs and expenses incurred by the Agent in the performance of its duties hereunder shall be borne by the Agent and shall not be included in calculating the commission payable to the Agent.
6. Confidentiality
The Agent agrees to maintain strict confidentiality with respect to any and all business transactions and other information related to the Principal or its products.
7. Term and Termination
This Agreement shall come into force on the date of signature by both the parties and shall remain in force until the _____ day of ___________, 20__, subject to either party terminating the Agreement on twenty days written notice to the other.
8. Disputes
Any disputes arising out of this Agreement shall be referred to and settled by arbitration before a sole arbitrator. The Award given by the arbitrator shall be binding on the parties.
9. Miscellaneous
This Agreement constitutes the entire understanding between the Parties hereto and can only be amended by an instrument in writing signed by both the parties.
IN WITNESS WHEREOF THE PARTIES HAVE EXECUTED THIS AGREEMENT THIS ____ DAY OF _________________, 20__.
Principal: ____________________________________ (Signature, Name and Address)
Agent: ____________________________________ (Signature, Name and Address)
