Sample Agent Representative Agreement
A manufacturer or company that wishes to subcontract the marketing of its products in an overseas country to a sales representative or representative established in the country. Paragraph 6.3 deals with accounting arrangements and the establishment of a “profit and loss account”. Paragraph 6.3.2 indicates how to distribute profits. The clause does not deal with the possibility of not making a profit, but this possibility should not be ruled out. Some example formulas to cover this are italic, but it would be unusual for an agent to have to participate in a loss. This sales representation agreement is intended for use by a manufacturer or supplier in one country who wishes to appoint a representative as a sales agent in another country. The agreement is unusual in that, instead of the agent/representative who receives a sales commission, the agreement provides that the contracting entity contributes to the costs of promoting the sale and that a special account is established at the end of each year in respect of the activities covered by the agreement and that the profits are allocated in predetermined shares between the client and the agent. Role of the representative. What are their exact tasks? These probably vary depending on the nature of the transaction This representation agreement creates an agreement between a manufacturer or supplier and a sales representative in another country.
Unlike a commission contract, the company making the order is rather an employer or a joint venture partner. He will make funds available to the representative and, at the end of each year, the representative will receive a share of the profit, based on the sales made. Rates. Since this is not a simple commission agreement, it is likely that the representative will receive maintenance allowance and expenses and will then be associated with the benefit. CONSIDERING that the company and the agent wish to enter into an agreement under which the agent markets and sells the product in accordance with the conditions contained therein. This clause provides for a fixed period of departure from the agreement, which then reverses from year to year, unless one of the parties decides to terminate the termination. Given the profit-growing nature of the agreement, the initial period is expected to last more than one year. The appointing company wishes to prevent the representative from working for direct competitors, both during the agreement and for a period after its termination. It defines the financial structure and profit-learning agreements.
6.1 envisages that the contracting authority will contribute in cash to the operating costs of the representative and reimburse the costs incurred by the representative. .