An example of termination "for a good reason" would be if the sales representative does not meet the quotas. An example of "for convenience" would be if the company decided that it no longer wanted to use the representative`s services. In both scenarios, there should be a clear procedure for termination and appropriate notification provisions. Below you will find even more details about the seven clauses that should be included in your distribution agreements. 5. Give the Agent 30 days` notice in case the Company wishes to terminate this Agreement. (a) ________ per cent of all prepaid sales, except as set forth below. (b) _______ per cent of all loan sales, except as set forth below. Depending on the situation, the representative may also not be reimbursed for labour costs. The agreement should specify whether an agent`s costs can be reimbursed and should specify any limits on eligible costs. A sales representative contract ensures that your sales representative brings your product to your target group at a fair price and in the appropriate locations.
A sales representative contract describes the terms of all sales activities regarding the rights and obligations assigned to your business and the sellers you hire. Distribution agreements can serve as protection for you and your sales representatives, and can govern sensitive distribution issues such as exclusive territory, confidential information, compensation, commissions (and unpaid commissions), trade secrets, and termination. The first point to clarify in a sales representative contract, even if it has already been discussed, is whether the representative is an independent contractor or an employee. .