The Sales Representative Contract is essential for businesses operating in Austria that wish to engage external sales representatives to promote and sell their products or services. This document is specifically designed to comply with Austrian legal requirements, particularly the Handelsvertretergesetz (Commercial Agents Act) and related commercial laws. It's typically used when a company wants to expand its sales presence without establishing direct employment relationships, instead opting for independent commercial agents. The contract covers crucial elements such as territory rights, commission structures, performance expectations, and termination provisions, while ensuring compliance with mandatory Austrian legal requirements regarding notice periods, compensation rights, and post-contractual obligations. This agreement is particularly important as it helps prevent future disputes by clearly defining the relationship's commercial and legal parameters while protecting both parties' interests under Austrian law.
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1. Parties: Identification of the principal company and the sales representative, including full legal names, addresses, and registration details
2. Background: Context of the agreement and brief description of the business relationship to be established
3. Definitions: Key terms used throughout the agreement, including Products, Territory, Customers, Commission, etc.
4. Appointment and Territory: Formal appointment of the sales representative and definition of the geographical territory or customer segment
5. Products and Services: Description of the products or services the representative is authorized to sell
6. Duties and Obligations of the Sales Representative: Detailed responsibilities including promotion, customer service, reporting, and compliance with company policies
7. Rights and Obligations of the Principal: Company's obligations including product information, support, and training
8. Commission Structure: Detailed commission calculations, payment terms, and conditions for commission entitlement
9. Reporting and Accounting: Requirements for sales reports, customer information, and commission statements
10. Intellectual Property and Confidentiality: Protection of company IP, trade secrets, and confidential information
11. Non-Competition and Non-Solicitation: Restrictions during and after the contract term, in compliance with Austrian law
12. Term and Termination: Contract duration, notice periods, and grounds for termination as per HVertrG
13. Post-Termination Provisions: Obligations after contract end, including compensation claims and return of materials
14. General Provisions: Standard clauses including governing law, jurisdiction, and entire agreement
1. Minimum Performance Requirements: Used when specific sales targets or performance metrics are required
2. Sub-agents: Include when the representative is permitted to appoint sub-agents
3. Insurance Requirements: Used when specific insurance coverage is required from the representative
4. Data Protection Compliance: Detailed GDPR compliance section when representative handles significant customer data
5. Marketing and Advertising: Include when representative has specific marketing responsibilities or restrictions
6. Training and Support: Used when extensive training or support programs are provided
7. Inventory and Samples: Include when representative handles product inventory or samples
8. Expense Reimbursement: Used when specific expenses are reimbursable by the principal
1. Schedule 1 - Product List: Detailed list of products/services with pricing and commission rates
2. Schedule 2 - Territory Map: Detailed description or map of the assigned territory
3. Schedule 3 - Commission Structure: Detailed commission calculations, bonuses, and special incentives
4. Schedule 4 - Reporting Templates: Standard forms for sales reports and customer information
5. Schedule 5 - Company Policies: Relevant company policies and procedures
6. Appendix A - Performance Metrics: Specific KPIs and performance evaluation criteria
7. Appendix B - Confidential Information: Detailed list of what constitutes confidential information
8. Appendix C - Approved Marketing Materials: Templates and guidelines for marketing activities
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