Posted in Marketing and Strategy Terms, Total Reads: 249
Definition: Sales Agency
Sales Agency is an agreement under which an agent acquires the right to negotiate sales of goods and services provided by the parent company, usually in exchange of a commission which in the form of certain percentage of the sales.
A typical sales agency agreement contains following sections –
1. Appointment and Authority of representative which define exclusive sales representatives, Independent contractors.
2. Commission section which defines Sole Compensation, basis of commission, time of payment, commission charge – back, monthly statements, inspection of records
3. Price and terms of sale, quotations, orders, acceptance, credit approval, collection, inquiries from outside the territory, product availability
4. Additional obligation of representative which includes annual quota commitment, promotion of the products, facilities, customer and sales reporting, customer service, product complains, expense of doing business, representations
5. Additional obligation of the company which includes training by company, regulatory approvals, materials, telephone marketing and technical sales support, delivery time, new developments
7. Confidential information
9. Terms of termination which includes return of material and products
10. Miscellaneous which include notices, assignment, compliance with law, property rights, severability, modification waiver, entire agreement, counterparts