The Sales Representative Contract is essential for businesses operating in Pakistan that engage individuals or entities to promote and sell their products or services. This agreement is structured to comply with Pakistani law, particularly the Contract Act 1872 and relevant commercial regulations. It is typically used when a company wants to expand its market presence through independent sales representatives or agents, rather than direct employees. The document covers crucial aspects such as territory allocation, commission structures, performance targets, reporting requirements, and compliance with local regulations. It's particularly important for defining the nature of the relationship, whether as an independent contractor or employee, and establishing clear parameters for the sales activities, compensation, and performance expectations.
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1. Parties: Identification of the company and sales representative, including full legal names, addresses, and registration details
2. Background: Context of the agreement, brief description of the company's business, and purpose of engaging the sales representative
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Territory: Formal appointment of the sales representative and definition of the geographic territory
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Duties and Responsibilities: Detailed obligations of the sales representative, including sales targets and reporting requirements
7. Commission Structure: Details of commission rates, calculation methods, and payment terms
8. Company's Obligations: Company's responsibilities including product information, support, and training
9. Intellectual Property Rights: Protection of company's IP and usage rights granted to representative
10. Confidentiality: Obligations regarding confidential information and trade secrets
11. Non-Competition: Restrictions on competing activities during and after the agreement
12. Termination: Grounds and procedures for termination of the agreement
13. Post-Termination Obligations: Obligations and procedures following contract termination
14. Governing Law and Jurisdiction: Specification of Pakistani law as governing law and jurisdiction for disputes
1. Employment Status: Clear statement of independent contractor status, used when the representative is not an employee
2. Performance Incentives: Additional bonus structures beyond basic commission, used for complex compensation schemes
3. Marketing and Advertising: Guidelines for marketing activities, used when representative has marketing responsibilities
4. Product Training: Detailed training requirements, used for technical or complex products
5. Insurance Requirements: Specific insurance obligations, used when representative deals with high-value products or services
6. Sub-agents: Rules regarding appointment of sub-agents, used when sub-delegation is permitted
7. Digital Marketing: Guidelines for online sales and social media, used for digital sales channels
8. Force Majeure: Provisions for unforeseen circumstances, used in long-term agreements
1. Schedule 1 - Territory Description: Detailed description of the geographic territory with maps or boundaries
2. Schedule 2 - Product List: Comprehensive list of products/services the representative is authorized to sell
3. Schedule 3 - Commission Rates: Detailed commission structure, including any variations by product or volume
4. Schedule 4 - Sales Targets: Specific sales targets and performance metrics
5. Schedule 5 - Reporting Templates: Standard forms for sales reports and documentation
6. Appendix A - Company Policies: Relevant company policies the representative must comply with
7. Appendix B - Training Requirements: Details of required training programs and certifications
8. Appendix C - Marketing Guidelines: Guidelines for use of company branding and marketing materials
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