The Sales Representative Contract is essential for businesses operating in Malta who wish to engage sales representatives to promote and sell their products or services. This document is particularly important as it must comply with both Maltese commercial law and relevant EU regulations, including the Commercial Agency Regulations (S.L. 13.16) which implements EU Directive 86/653/EEC. The contract establishes clear parameters for the commercial relationship, including territorial rights, commission structures, performance metrics, and reporting requirements. It's commonly used when companies expand their sales operations, enter new markets, or restructure their sales force, providing legal protection for both the principal company and the representative while ensuring compliance with local and EU regulations regarding commercial agency relationships.
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1. Parties: Identification of the principal company and the sales representative, including full legal names, registration numbers, and addresses
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 Scope: Terms of appointment, exclusivity status, and scope of the sales representative's authority
5. Territory and Products: Defined geographical area and specific products covered by the agreement
6. Duties and Obligations: Detailed responsibilities of the sales representative and the principal company
7. Commission Structure: Commission rates, calculation methods, payment terms, and conditions for commission eligibility
8. Targets and Performance: Sales targets, performance metrics, and evaluation criteria
9. Reporting Requirements: Regular reporting obligations, documentation requirements, and communication protocols
10. Intellectual Property: Usage rights and restrictions regarding the principal's trademarks, logos, and other IP
11. Confidentiality: Confidentiality obligations and handling of sensitive information
12. Data Protection: GDPR compliance requirements and data handling procedures
13. Term and Termination: Duration of the agreement and grounds for termination
14. Post-Termination Obligations: Obligations and restrictions following contract termination
15. General Provisions: Standard legal clauses including governing law, notices, and dispute resolution
1. Training and Support: Details of training and support provided by the principal - include when significant product training is required
2. Marketing and Advertising: Marketing responsibilities and cost-sharing arrangements - include when marketing activities are part of the representative's duties
3. Minimum Purchase Requirements: Minimum order quantities or values - include for products with specific volume requirements
4. Sub-agents: Terms for appointing sub-agents - include when sub-agents are permitted
5. Insurance: Insurance requirements and coverage obligations - include for high-value products or specific industry requirements
6. Non-Compete: Non-competition restrictions - include when protecting market share is crucial
7. Stock Holding: Terms for maintaining inventory - include when the representative will hold stock
8. Customer Service: After-sales service obligations - include for technical products or services requiring ongoing support
1. Schedule 1 - Territory Definition: Detailed description of the geographical territory, including maps if relevant
2. Schedule 2 - Product List: Comprehensive list of products covered by the agreement, including specifications and prices
3. Schedule 3 - Commission Rates: Detailed commission structure, including any variations by product or customer type
4. Schedule 4 - Sales Targets: Specific sales targets and performance metrics
5. Schedule 5 - Reporting Templates: Standard forms and templates for regular reporting
6. Schedule 6 - Operating Procedures: Detailed procedures for order processing, customer management, and reporting
7. Appendix A - Trademark Usage Guidelines: Guidelines for using the principal's trademarks and branding
8. Appendix B - Confidential Information: Specific categories of confidential information and handling requirements
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