Sales Contractor Agreement Template for New Zealand

A comprehensive legal agreement governed by New Zealand law that establishes and regulates the relationship between a business and an independent sales contractor. This document outlines the terms of engagement, commission structures, performance expectations, and obligations of both parties while ensuring compliance with New Zealand's contractor legislation, including the Contract and Commercial Law Act 2017 and relevant tax regulations. It includes provisions for protecting intellectual property, maintaining confidentiality, and defining territorial rights, while clearly distinguishing the contractor relationship from employment.

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What is a Sales Contractor Agreement?

The Sales Contractor Agreement is designed for use in New Zealand business contexts where companies engage independent contractors for sales activities rather than employing traditional salespeople. This document is essential when businesses want to expand their sales capacity through external contractors while maintaining clear boundaries between employment and contractor relationships. The agreement covers crucial elements including commission structures, sales territories, performance metrics, confidentiality obligations, and intellectual property protection, all aligned with New Zealand legal requirements. It's particularly relevant in situations where businesses need flexible sales resources or specialized industry expertise without the commitments of full-time employment. The document ensures compliance with New Zealand's contractor legislation while protecting both parties' interests through clear terms and conditions.

What sections should be included in a Sales Contractor Agreement?

1. Parties: Identifies the contracting parties - the company and the sales contractor, including full legal names and addresses

2. Background: Outlines the context of the agreement, including the company's business and its need for sales contractors

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Status: Establishes the contractor's appointment and explicitly confirms independent contractor status

5. Term and Termination: Specifies the agreement duration, renewal provisions, and termination circumstances

6. Contractor's Obligations: Details the contractor's duties, sales targets, reporting requirements, and service standards

7. Company's Obligations: Outlines the company's responsibilities, including support, training, and resources provided

8. Compensation and Payment Terms: Specifies commission structures, payment schedules, and expense policies

9. Intellectual Property: Addresses ownership and usage of intellectual property, including company materials and customer data

10. Confidentiality: Defines confidential information and obligations regarding its protection

11. Non-Competition and Non-Solicitation: Establishes restrictions on competing activities and customer/employee solicitation

12. Insurance and Liability: Specifies insurance requirements and liability limitations

13. General Provisions: Includes standard clauses like governing law, dispute resolution, and entire agreement

What sections are optional to include in a Sales Contractor Agreement?

1. International Travel: Include when the contractor may need to travel internationally for sales activities

2. Product Training: Include when specific product training requirements exist

3. Team Management: Include when the contractor may need to manage or coordinate with other sales contractors

4. Digital Platform Usage: Include when the contractor needs to use specific software or digital platforms

5. Customer Data Protection: Include when the contractor handles sensitive customer data requiring specific protocols

6. Performance Bonuses: Include when additional performance-based incentives are offered

7. Equipment Provision: Include when company provides specific equipment or tools

8. Subcontracting: Include when the contractor may be allowed to subcontract certain activities

What schedules should be included in a Sales Contractor Agreement?

1. Schedule 1 - Commission Structure: Detailed breakdown of commission rates, tiers, and calculation methods

2. Schedule 2 - Sales Territories: Definition of assigned sales territories or customer segments

3. Schedule 3 - Sales Targets: Specific sales targets and performance metrics

4. Schedule 4 - Approved Expenses: List of reimbursable expenses and claim procedures

5. Schedule 5 - Reporting Templates: Standard forms and templates for sales reporting

6. Appendix A - Company Policies: Relevant company policies applicable to contractors

7. Appendix B - Product Information: Overview of products/services the contractor is authorized to sell

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

Jurisdiction

New Zealand

Publisher

Genie AI

Cost

Free to use

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