Sales Broker Agreement Template for Indonesia

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Key Requirements PROMPT example:

Sales Broker Agreement

"I need a Sales Broker Agreement for appointing an exclusive broker to sell our industrial machinery in West Java, Indonesia, with a 10% commission structure and quarterly sales targets, starting March 2025."

Document background
The Sales Broker Agreement is essential for businesses operating in Indonesia that utilize intermediaries to expand their market presence and sales capabilities. This document is particularly relevant in the Indonesian market context, where local knowledge and connections are vital for business success. It establishes the legal framework for appointing sales brokers under Indonesian law, detailing their rights to represent the principal company in specific territories, commission structures, and compliance requirements with local regulations. The agreement is designed to protect both parties' interests while ensuring alignment with Indonesian commercial practices and regulatory requirements, including necessary business licenses and permits. Common scenarios for its use include appointing local representatives for foreign companies, establishing distribution networks within Indonesia's archipelagic geography, and formalizing relationships with sales intermediaries in various industrial and commercial sectors.
Suggested Sections

1. Parties: Identification of the Principal/Company and the Broker, including their complete legal names, registration numbers, and addresses

2. Background: Context of the agreement, brief description of the Principal's business, and the purpose of engaging a sales broker

3. Definitions: Key terms used throughout the agreement, including 'Products', 'Territory', 'Customers', 'Commission', and other relevant terms

4. Appointment and Scope: Formal appointment of the broker, nature of the relationship (non-exclusive/exclusive), and detailed scope of services

5. Territory and Products: Specific geographical area where the broker is authorized to operate and detailed description of products/services to be sold

6. Broker's Rights and Obligations: Detailed responsibilities, performance standards, reporting requirements, and authorized activities

7. Principal's Rights and Obligations: Company's commitments, support to be provided, and obligations towards the broker

8. Commission Structure: Detailed commission calculations, payment terms, conditions for commission eligibility, and payment schedule

9. Intellectual Property: Usage rights and restrictions regarding the Principal's trademarks, logos, and marketing materials

10. Confidentiality: Protection of confidential information, trade secrets, and customer data

11. Term and Termination: Duration of the agreement, renewal terms, and grounds for termination

12. Post-Termination: Obligations and rights after agreement termination, including commission payments and return of materials

13. Governing Law and Dispute Resolution: Application of Indonesian law and process for resolving disputes

Optional Sections

1. Non-Competition: Restrictions on broker's ability to represent competing products/services, used when protecting market position is crucial

2. Performance Targets: Specific sales targets and consequences for meeting/missing them, included when performance measurement is essential

3. Training and Support: Details of training and support provided by the Principal, included for complex products or services

4. Insurance Requirements: Specific insurance coverage requirements for the broker, included for high-value or high-risk products

5. Marketing and Promotion: Responsibilities and guidelines for marketing activities, included when broker has marketing duties

6. Customer Service Standards: Required service levels and customer support responsibilities, included for customer-facing roles

7. Compliance with Anti-Corruption Laws: Specific provisions regarding anti-bribery and corruption, included for international trade

8. Data Protection: Specific provisions for handling personal data under Indonesian law, included when customer data is processed

Suggested Schedules

1. Schedule 1 - Products and Services: Detailed list and specifications of products/services covered by the agreement

2. Schedule 2 - Commission Rates: Detailed commission structures, calculations, and examples

3. Schedule 3 - Territory Definition: Detailed description of geographical boundaries and any excluded areas

4. Schedule 4 - Reporting Templates: Standard forms for sales reports and performance tracking

5. Schedule 5 - Operating Procedures: Detailed procedures for order processing, customer handling, and other operational matters

6. Appendix A - Required Licenses: List of required permits and licenses under Indonesian law

7. Appendix B - Marketing Guidelines: Guidelines for use of Principal's branding and marketing materials

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Consumer Goods

Real Estate

Industrial Equipment

Technology

Pharmaceuticals

Automotive

Construction Materials

Agricultural Products

Financial Services

Telecommunications

Energy

Chemical Products

Fashion and Textiles

Food and Beverage

Relevant Teams

Legal

Sales Operations

Commercial

Business Development

Compliance

Finance

Contract Administration

Channel Management

Regional Operations

Partner Relations

Relevant Roles

Sales Director

Commercial Manager

Business Development Manager

Sales Operations Manager

Channel Manager

Legal Counsel

Compliance Officer

Chief Commercial Officer

Regional Sales Manager

Contract Administrator

Sales Broker

Agency Manager

Distribution Manager

Partnership Manager

Chief Executive Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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