2. Payment of the sales commission. The company pays the contractor a sales commission (a regular commission) equal to 15% of the retail price paid by the customer for the products [company names] ordered (sales of products). The retail price excludes: taxes, shipping and handling as well as any other special tax paid by the customer. The company may consolidate all sales commissions owed by the contractor for sales made and recovered during the last billing period. Commission payments to the contractor are made monthly. Small businesses often find it useful to recruit independent salespeople who act as independent contractors and not as employees. It is likely that your business will need more than one sales agent, and in this case, you want to use a non-exclusive distributor agreement that clearly indicates that you are using multiple representatives to sell your products or services. Finally, the agreement should specify what a representative should do after the termination.
The agreement should require agents to stop presenting themselves as representatives of the company and to return the equipment provided by the company. The first point that needs to be clarified in a distributor representative contract, even if it has already been discussed, is whether the representative is an independent contractor or a staff member. An independent contractor is a professional or self-employed person who provides a service and is hired by a company or individual to perform a specific task. Skills such as writing, graphic design and machining are often the types of work that are needed temporarily or in the short term, but almost all types of work can be done as independent contractors. A commercial agreement ensures that your sales agent transmits your product to your target customer at a fair price and in the right places. A trade agreement outlines the terms of all distribution activities regarding the rights and responsibilities assigned to your business and the sales agents you hire. Trade agreements can serve as protection for you and your salespeople and address sensitive sales issues, such as exclusive domain, confidential information, compensation, commissions (and unpaid commissions), trade secrets and terminations. To establish a full distribution agreement, you must include the following seven provisions. You can establish your own non-exclusive sales agreement or cooperate with a lawyer or use a template for non-exclusive sales agreements. A non-exclusive commercial agreement allows you to establish a clear working relationship with the salespeople who will sell your products. In addition to these key provisions, there are several other clauses, such as the choice of law and separation you should include, so be sure to speak to your lawyer before concluding your distribution agreement.
Below are more details on the seven clauses that should be included in your commercial contracts. 1. Overview Commercial agents are an important part of the company`s success.