The Sales Agent Agreement is a crucial commercial contract used when a company (Principal) wishes to engage an independent commercial agent to promote and sell its products or services in Belgium or broader territories. This document is essential for businesses expanding their sales operations through agents rather than employed salespeople. The agreement must comply with the Belgian Law on Commercial Agency Agreements of 1995, which provides significant protective measures for commercial agents. It covers essential elements such as territory definition, commission calculations, performance expectations, and termination provisions. The document is particularly important as Belgian law provides strong protections for commercial agents, including mandatory notice periods, goodwill indemnity upon termination, and specific rules regarding commission payments.
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1. Parties: Identification of the Principal and the Agent, including full legal names, registration details, and addresses
2. Background: Context of the agreement, brief description of the Principal's business and the purpose of appointing the Agent
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Territory: Scope of Agent's appointment, exclusivity status, and defined territorial boundaries
5. Agent's Rights and Obligations: Detailed description of Agent's duties, responsibilities, and rights including promotion, market development, and reporting requirements
6. Principal's Rights and Obligations: Principal's commitments, including provision of information, marketing materials, and support
7. Commission Structure: Detailed commission calculations, payment terms, and conditions for earning commission
8. Reporting and Payment Terms: Requirements for sales reporting, commission statements, and payment procedures
9. Intellectual Property: Usage rights and restrictions regarding Principal's trademarks, logos, and other IP
10. Confidentiality: Obligations regarding confidential information and trade secrets
11. Duration and Termination: Term of agreement, notice periods, and grounds for termination as per Belgian law
12. Post-Termination Provisions: Handling of pending commissions, return of materials, and final settlements
13. Governing Law and Jurisdiction: Confirmation of Belgian law application and jurisdiction for disputes
1. Non-Compete Clause: Restrictions on Agent's competitive activities during and after the agreement, used when protecting market position is crucial
2. Data Protection: GDPR compliance provisions, required when personal data processing is involved
3. Minimum Performance Requirements: Specific sales targets or KPIs, included when performance benchmarks are needed
4. Sub-Agents: Terms for appointing sub-agents, included when sub-agents are permitted
5. Insurance Requirements: Specific insurance coverage requirements, included for high-value or high-risk products
6. Stock Handling: Terms for handling product inventory, included when Agent maintains stock
7. Training Requirements: Specific training obligations, included for technical or specialized products
1. Schedule 1 - Products: List of products or services covered by the agreement
2. Schedule 2 - Territory Details: Detailed description of geographical territory including any excluded areas
3. Schedule 3 - Commission Rates: Detailed commission structure, including any variations by product or customer type
4. Schedule 4 - Reporting Templates: Standard forms for sales reports and commission calculations
5. Schedule 5 - Marketing Guidelines: Guidelines for use of Principal's marketing materials and branding
6. Appendix A - Product Specifications: Technical specifications of products (if applicable)
7. Appendix B - Customer Service Standards: Required service levels and customer support procedures
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