The Direct Sales Agreement serves as the foundational document for companies engaging in direct-to-consumer sales operations within the United States. This contract type is essential when establishing a direct sales channel, whether through individual sales representatives, multi-level marketing, or direct selling organizations. The agreement encompasses crucial elements such as territory definitions, compensation structures, compliance requirements, and operational guidelines while ensuring adherence to federal and state regulations, including FTC guidelines and state-specific direct selling laws.
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1. Parties: Identifies and defines all parties to the agreement, including legal names and addresses
2. Background/Recitals: Sets out the context and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Territory: Establishes the seller's rights and designated sales territory
5. Products and Pricing: Details the products covered and pricing structure
6. Order and Delivery Terms: Specifies ordering process and delivery requirements
7. Payment Terms: Details payment conditions, methods, and timing
8. Term and Termination: Specifies duration and termination conditions
9. Warranties: States product warranties and limitations
10. Governing Law: Specifies applicable law and jurisdiction
1. Marketing Requirements: Details marketing obligations and restrictions when specific marketing requirements exist
2. Training Requirements: Specifies required training programs when product requires specialized knowledge
3. Minimum Purchase Requirements: States minimum order quantities when volume commitments are needed
4. Non-Compete Provisions: Restricts selling competing products when exclusivity is required
5. Insurance Requirements: Specifies required insurance coverage when liability risks are significant
1. Product Schedule: Detailed list of products and specifications
2. Price List: Comprehensive pricing information and discounts
3. Territory Map: Geographic definition of sales territory
4. Service Level Agreement: Performance metrics and requirements
5. Return Policy: Detailed product return procedures
6. Commission Structure: Detailed commission calculations and terms
Relevant legal definitions
Agreement
Applicable Laws
Business Day
Commission
Confidential Information
Customer
Effective Date
Force Majeure
Initial Term
Intellectual Property Rights
Marketing Materials
Minimum Purchase Requirements
Order
Products
Product Specifications
Purchase Price
Quality Standards
Renewal Term
Sales Quota
Sales Territory
Sales Tools
Seller
Supplier
Term
Territory
Trademarks
Training Materials
Warranties
Applicable Laws
Business Day
Commission
Confidential Information
Customer
Effective Date
Force Majeure
Initial Term
Intellectual Property Rights
Marketing Materials
Minimum Purchase Requirements
Order
Products
Product Specifications
Purchase Price
Quality Standards
Renewal Term
Sales Quota
Sales Territory
Sales Tools
Seller
Supplier
Term
Territory
Trademarks
Training Materials
Warranties
Clauses
Appointment and Authority
Territory Rights
Product Supply
Pricing and Payment
Commission Structure
Order Processing
Delivery Terms
Marketing and Promotion
Training Requirements
Performance Standards
Minimum Purchase Requirements
Product Warranties
Quality Control
Intellectual Property
Confidentiality
Non-Competition
Non-Solicitation
Compliance Requirements
Record Keeping
Audit Rights
Insurance
Indemnification
Force Majeure
Term and Renewal
Termination Rights
Post-Termination Obligations
Governing Law
Dispute Resolution
Assignment
Entire Agreement
Severability
Notices
Amendment and Modification
Territory Rights
Product Supply
Pricing and Payment
Commission Structure
Order Processing
Delivery Terms
Marketing and Promotion
Training Requirements
Performance Standards
Minimum Purchase Requirements
Product Warranties
Quality Control
Intellectual Property
Confidentiality
Non-Competition
Non-Solicitation
Compliance Requirements
Record Keeping
Audit Rights
Insurance
Indemnification
Force Majeure
Term and Renewal
Termination Rights
Post-Termination Obligations
Governing Law
Dispute Resolution
Assignment
Entire Agreement
Severability
Notices
Amendment and Modification
Relevant Industries
Relevant Teams
Relevant Roles
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