Who can use this Appointment of Retail Sales Agent?
Any manufacturer or wholesale supplier of goods for the retail market can use this sales agent appointment.
What is this Appointment of Retail Sales Agent contract for?
The appointment sets out the obligations of the sales agent, specifies the area in which the agent will operate, and the commission payable on sales. The product could be almost anything – from gym equipment to stationery.
What are the main issues?
Duties of sales agent. Not only must the agent confine sales activity to the agreed territory, but any enquiries from outside the territory should be referred to the client or principal, who can then follow up. Regular reporting on visits and leads and generally keeping records of customers and prospective customers is also important.
Obligations of principal. The support to be provided to the agent by the principal can usefully be set out – e.g. supply of sample products, marketing literature etc.
Commission: both how this is calculated and when it gets paid need to be covered.
Restrictions on sales agent. It’s important to make it clear that the agent does not have any authority to make commitments to a customer or to vary any standard terms of sale . But occasionally this can happen with specific written authority from the principal. Protecting the intellectual property and trademarks of the principal is also important and notifying any potential infringements.
Duration & Termination. There could be an initial fixed period or it could be open-ended with either party having the right to give, say, 3 months’ notice. The termination clause will also say what happens after termination. This may include a restriction on the agent approaching the principal’s customers after the agreement comes to an end.
What detailed terms does the Appointment of Retail Sales Agent contain?
The main points cover:
- account for the commission
- principal’s obligations, including support, exclusivity, indemnity, quality, supply and payment
- agent’s obligations, including sales, promotion, loyalty, compliance, enquiries, intellectual property, secrecy, reporting, records and inspections, warranties and compliance
- consequences of termination
- principal’s assignment rights
- change of address
For more information on each of these sections, see our Explanatory Notes which you will receive when you download the document from our website.
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When I download the document, can I change it and/or use it more than once?
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