Sales Representative Contract Template for Malaysia

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Key Requirements PROMPT example:

Sales Representative Contract

"I need a Sales Representative Contract for appointing an exclusive sales agent to represent my medical device company in East Malaysia, with a minimum sales target of RM 2 million for 2025 and a tiered commission structure ranging from 5-12% based on performance."

Document background
The Sales Representative Contract is a crucial document used when a company wishes to engage an individual or entity to promote and sell its products or services in Malaysia. This agreement is essential for businesses expanding their sales operations through independent representatives rather than direct employees. The contract must comply with Malaysian legislation, including the Contracts Act 1950, Employment Act 1955 (for determining independent contractor status), and Competition Act 2010. It typically includes detailed provisions on territory rights, commission structures, performance targets, reporting requirements, and protection of company interests through confidentiality and non-compete clauses. The document serves as a comprehensive framework for managing the commercial relationship while ensuring clarity of obligations and expectations for both parties.
Suggested Sections

1. Parties: Identification of the company and the sales representative with full legal names and addresses

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Key terms used throughout the agreement including Products, Territory, Customers, Commission, etc.

4. Appointment and Territory: Scope of appointment, territory definition, and exclusivity/non-exclusivity terms

5. Representative's Duties and Responsibilities: Detailed obligations, sales targets, reporting requirements, and standard of performance

6. Company's Obligations: Support, training, marketing materials, and other company commitments

7. Commission Structure and Payment Terms: Calculation method, payment schedule, deductions, and reporting

8. Term and Termination: Duration of agreement, renewal terms, and termination conditions

9. Confidentiality: Protection of business secrets and customer information

10. Intellectual Property: Usage rights of company trademarks, logos, and materials

11. Non-Competition and Non-Solicitation: Restrictions during and after the agreement term

12. Independent Contractor Status: Clarification of relationship and tax responsibilities

13. General Provisions: Standard clauses including governing law, notices, and amendment procedures

Optional Sections

1. Product Training: Detailed training requirements and certification processes, include if products require specialized knowledge

2. Marketing and Advertising: Guidelines for promotional activities, include if representative has marketing responsibilities

3. Insurance Requirements: Specific insurance coverage requirements, include if high-value products or significant risks involved

4. Data Protection: Specific PDPA compliance requirements, include if handling sensitive customer data

5. Minimum Performance Requirements: Specific sales targets and consequences, include if performance-based relationship

6. Sub-Representatives: Rules for appointing sub-agents, include if allowed to delegate duties

7. International Sales: Cross-border sales regulations, include if territory spans multiple countries

Suggested Schedules

1. Schedule 1 - Territory Description: Detailed geographical boundaries and/or customer segments

2. Schedule 2 - Product List: Comprehensive list of products/services with pricing and commission rates

3. Schedule 3 - Commission Structure: Detailed commission calculations, bonuses, and special incentives

4. Schedule 4 - Sales Targets: Specific performance metrics and evaluation criteria

5. Schedule 5 - Reporting Templates: Standard forms for sales reports and documentation

6. Schedule 6 - Company Policies: Relevant company procedures and compliance requirements

7. Appendix A - Marketing Guidelines: Approved marketing practices and brand usage rules

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

Clauses
Relevant Industries

Retail

Manufacturing

Consumer Goods

Technology

Pharmaceuticals

Industrial Equipment

Automotive

Electronics

Telecommunications

Food and Beverage

Construction Materials

Fashion and Apparel

Medical Devices

Software and IT Services

Chemical Products

Relevant Teams

Sales

Legal

Human Resources

Compliance

Finance

Operations

Business Development

Commercial

Administration

Risk Management

Relevant Roles

Sales Director

Commercial Director

Business Development Manager

Regional Sales Manager

Sales Operations Manager

Channel Manager

Territory Manager

Sales Representative

Account Executive

Legal Counsel

Contracts Manager

HR Director

Chief Commercial Officer

Sales Administrator

Compliance 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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