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Published by: ahemadam on Apr 20, 2013
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A Foreign Sales Representative Agreement is an agreement used by a business to appoint its foreign
sales representatives. The agreement sets forth the status of the sales representative as either exclusive
or non-exclusive, designates the representative’s sales territory, and indicates the products he is
authorized to sell.

Why/When should you use it?

Anytime you appoint a foreign sales representative or are appointed as a foreign sales representative,
you should use this agreement. It should be executed before the representative begins acting on the
company’s behalf. You should use this agreement because it sets forth the rights and obligations of

JIAN AgreementBuilder® - Handbook of Business Contracts


both parties. Imagine if you appointed sales representatives verbally—you would have little or no
control over the territory the representative sold to, it would be difficult to establish and maintain
quotas, and, most importantly, it might be difficult to terminate the appointment. For many of the same
reasons, it is in the best interest of the sales representative to have an agreement with the business.
Among other things, the agreement sets forth the representative’s commission rate.

Who should use it?

Any company who uses independent sales representatives outside the United States, or any such
foreign representative should use this agreement.

How should you use it?

As with all of your agreements, use it with care. Make sure to review the entire agreement.

Important Tips

If you are appointing a sales representative for territories inside the United States, you should use
AgreementBuilder’s Independent Sales Representative Agreement. You may want to modify some of
the agreement’s provisions. For example, one section of the agreement permits termination of the
agreement by either party without cause upon ninety days notice—while this benefits the company, it
may not be in the sales representative’s best interest.

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