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Independent Sales Rep Contract
"I need an Independent Sales Rep Contract for our Saudi manufacturing company to engage a sales representative to promote our industrial equipment in the Eastern Province, with a commission structure of 5% on net sales and quarterly performance reviews starting March 2025."
1. Parties: Identification of the principal company and the independent sales representative, including full legal names, addresses, and commercial registration details
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: Formal appointment of sales representative, definition of territory, and scope of authority
5. Independent Contractor Status: Clear statement of independent contractor relationship and disclaimer of employment relationship
6. Rights and Obligations: Detailed responsibilities of both parties, including sales targets, reporting requirements, and support provisions
7. Commission Structure: Detailed explanation of commission calculations, payment terms, and conditions for earning commission
8. Term and Termination: Duration of agreement, renewal terms, and conditions for termination by either party
9. Confidentiality: Protection of confidential information and trade secrets
10. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after the agreement
11. Compliance with Laws: Obligations to comply with Saudi laws, including anti-bribery and commercial agency regulations
12. Dispute Resolution: Process for resolving disputes, including jurisdiction and applicable law
13. General Provisions: Standard clauses including force majeure, notices, amendments, and entire agreement
1. Training and Support: Include when principal provides specific training or support services to the representative
2. Product Minimum Requirements: Include when setting specific sales quotas or minimum performance standards
3. Marketing and Advertising: Include when representative has responsibilities for marketing or advertising activities
4. Insurance Requirements: Include when specific insurance coverage is required from the representative
5. Inventory Requirements: Include if representative must maintain product inventory
6. Sub-agents: Include if representative is permitted to appoint sub-agents
7. Electronic Commerce: Include if sales activities involve online platforms or e-commerce
8. Intellectual Property Rights: Include when representative needs to use company trademarks or IP
9. Data Protection: Include when representative handles customer personal data
1. Schedule 1 - Territory Definition: Detailed description of geographical territory or customer segments assigned
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 customer type
4. Schedule 4 - Sales Targets: Specific sales targets and any associated bonus structures
5. Schedule 5 - Reporting Templates: Standard forms for sales reports and activity reporting
6. Schedule 6 - Compliance Procedures: Detailed procedures for ensuring compliance with Saudi regulations
7. Appendix A - Power of Attorney: If required, specific powers granted to the representative
8. Appendix B - Code of Conduct: Standards of business conduct and ethics requirements
Authors
Applicable Laws
Approved Customers
Business Day
Commercial Agency Law
Commission
Competitor
Confidential Information
Customer
Effective Date
Force Majeure Event
Intellectual Property Rights
Net Sales
Orders
Principal
Products
Purchase Order
Quarter
Representative
Sales Targets
Services
Sharia
Specification
Sub-agent
Term
Territory
Trade Marks
Valid Claim
VAT
Year
Territory Rights
Term and Duration
Independent Contractor Status
Commission
Payment Terms
Performance Requirements
Reporting Obligations
Training and Support
Non-Competition
Non-Solicitation
Confidentiality
Intellectual Property
Representations and Warranties
Compliance with Laws
Anti-Bribery
Record Keeping
Audit Rights
Insurance
Indemnification
Limitation of Liability
Force Majeure
Termination
Post-Termination Obligations
Assignment
Sub-Contracting
Notices
Governing Law
Dispute Resolution
Entire Agreement
Severability
Amendment
Waiver
Third Party Rights
Counterparts
Language
Electronic Execution
Manufacturing
Technology
Consumer Goods
Industrial Equipment
Healthcare Products
Construction Materials
Automotive
Electronics
Telecommunications
Professional Services
Software and IT
Pharmaceuticals
Food and Beverage
Retail
Chemical Products
Legal
Sales
Compliance
Business Development
Commercial Operations
Contract Administration
Risk Management
Finance
Human Resources
Corporate Affairs
Sales Director
Commercial Director
Business Development Manager
Legal Counsel
Compliance Officer
Sales Operations Manager
Channel Manager
Regional Sales Manager
Chief Commercial Officer
Sales Representative
Contract Manager
Chief Executive Officer
Managing Director
Head of Sales
General Counsel
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