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A Handbook of Business Contracts

A Handbook of Business Contracts

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Published by SAtAN
Business & Legal Templates
Business & Legal Templates

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Published by: SAtAN on Aug 16, 2011
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07/08/2013

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A Sales Representative Agreement is an agreement used by a business to appoint its 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?

JIAN AgreementBuilder® - Handbook of Business Contracts

94

Anytime you appoint an independent sales representative or are appointed an independent 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 clearly states the nature of
the relationship between the representative and the company (that of independent contractors), and it
sets forth the rights and obligations of both parties. Imagine if you appointed sales representatives
orally—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 in the United States, or any such
representative in this country 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 outside the United States, you should use
AgreementBuilder’s Foreign 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 thirty days notice—while this benefits the company, it
probably isn’t in the sales representative’s best interest.

JIAN AgreementBuilder® - Handbook of Business Contracts

95

SSttrruuccttuurriinngg RReeaall EEssttaattee TTrraannssaaccttiioonnss

Ultimately property rights and personal rights are the same thing.

- Calvin Coolidge

The agreements provided here will enable you to conduct simple real estate transactions. If you are
leasing property, your landlord will almost certainly present you with a commercial lease.
Nevertheless, a careful review of our commercial lease agreement along with this discussion on the
following pages will help you more thoroughly understand and better negotiate your real estate
transactions. The agreements listed below are included in AgreementBuilder to assist you.

Read the following pages if you’d like more information about real estate transactions:
Commercial Lease
Commercial Sublease
Lease Assignment by Lessee
Lease Assignment by Lessor
Lease Guaranty

Lease Modification
Residential Lease
Residential Sublease
Sublease Guaranty

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