Commercial Agency Contract

Description

Model of contract specially developed for activities requiring a commercial agent to promote the sale of goods. The model is drafted in such a way that it may be easily adapted to the needs of each activity and type of commercial agent. In this contract, one party (the Principal) places the other, either an individual or a company (the Agent) in charge of controlling the promotion of sales as an independent intermediary without assuming liability for those transactions. The Intermediary receives payment exclusively through commission on transactions which are completed successfully, and in some cases certain costs –for example business trips or promotional activities– may be taken into account. In the most important considerations of the contract (exclusivity, objectives, amounts to be paid and calculation of commissions, information, rescission, damages, etc) there are alternatives of wording.

The contract also includes an optional clause on sales made through Internet to clients established in the Territory of the Agent.

The language of this contract is English. It is also available in Spanish, French and German.

This is a model of Commercial Agency Contract suitable for companies and/or professionals based in the same country. If the Principal and the Agent are based in different countries the International Commercial Agency Contract should be used.

Index of the Contract

Parties Clauses ----------------- 1. Products and Territory 2. Functions of the Agent 3. Acceptance of Orders 4. Obligation to meet a minimum sales objective 5. Exclusivity 6. Sales Through The Internet 7. Commitment not to compete 8. Obligation to inform the Principal

9. Obligation to inform the Agent 10. Subagents 11. Prohibition of other Territories 12. Technical support 13. After-sales service and maintenance 14. Financial responsibility of the Agent 15. The Agent’s Commission 16. Calculating Commission 17. Reduced Commission

18. Margin of negotiation and discounts 19. Date of payment of commision 20. Transactions with entitlement to commission 21. Commission for transactions after completion of contract 22. Sales expenses and travel costs 23. Termination of contract 24. Compensation for termination 25. Term of contract

26. Return of samples and advertising material 27. Amendments 28. Granting of rights to third parties 29. Applicable law and competent jurisdiction ------------------ Signatures Annexes

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