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Commission Only Sales Rep Agreement Template for India

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Key Requirements PROMPT example:

Commission Only Sales Rep Agreement

"I need a Commission Only Sales Rep Agreement for our software company based in Bangalore, India, to engage an independent sales representative who will sell our enterprise software solutions in the Maharashtra region, with a 15% commission structure and quarterly sales targets."

Document background
The Commission Only Sales Rep Agreement is essential for businesses operating in India that wish to expand their sales reach without increasing fixed payroll costs. This document is particularly relevant when companies want to engage independent sales professionals or agencies on a pure commission basis, avoiding the complexities of employment relationships while ensuring clear performance expectations and compensation structures. The agreement must comply with Indian contract law and commercial regulations, including specific provisions for commission calculations, payment terms, and tax implications. It's commonly used by businesses looking to enter new markets or expand their sales force cost-effectively, providing a framework for both parties to understand their rights, obligations, and the terms of their commercial relationship.
Suggested Sections

1. Parties: Identification of the principal company and the sales representative, including full legal names and addresses

2. Background: Context of the agreement, nature of the principal's business, and purpose of engaging a sales representative

3. Definitions: Key terms used throughout the agreement including 'Territory', 'Products', 'Commission', 'Customers', etc.

4. Appointment and Territory: Formal appointment of the representative and definition of the geographic territory or market segment

5. Independent Contractor Status: Clear statement of independent contractor relationship and not employment

6. Duties and Responsibilities: Detailed obligations of the sales representative including sales targets, reporting, and customer service

7. Commission Structure: Detailed explanation of commission rates, calculation methods, and qualifying sales

8. Payment Terms: Timeline and method of commission payments, including any conditions precedent

9. Term and Termination: Duration of the agreement and circumstances under which either party may terminate

10. Confidentiality: Protection of confidential information and trade secrets

11. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after the agreement

12. Intellectual Property: Usage rights and restrictions regarding the principal's IP

13. Indemnification: Mutual indemnification provisions for various risks and liabilities

14. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes

15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Performance Targets: Specific sales targets and performance metrics, used when the principal wants to set concrete goals

2. Training and Support: Details of any training or support provided by the principal, included when significant support is offered

3. Marketing Materials: Rules regarding use and creation of marketing materials, included when the rep will handle marketing

4. Expense Reimbursement: Terms for any reimbursable expenses, included if principal will cover certain costs

5. Sub-agents: Rules regarding appointment of sub-agents, included if sub-agents are permitted

6. Insurance Requirements: Specific insurance coverage requirements, included for high-risk products or services

7. Post-Termination Procedures: Detailed procedures for handling pending sales and transitions after termination

8. Dispute Resolution: Alternative dispute resolution procedures, included when parties prefer arbitration or mediation

Suggested Schedules

1. Schedule A - Products/Services: Detailed list of products or services the representative is authorized to sell

2. Schedule B - Commission Rates: Detailed commission structure including any variations by product or volume

3. Schedule C - Territory Description: Detailed description of geographic territory or market segment

4. Schedule D - Sales Targets: Specific sales targets and performance metrics if applicable

5. Schedule E - Approved Customer List: List of existing customers or approved prospects if territory is customer-based

6. Appendix 1 - Reporting Templates: Standard forms for sales reports and commission calculations

7. Appendix 2 - Code of Conduct: Guidelines for professional conduct and ethical standards

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions














































Clauses





































Relevant Industries

Manufacturing

Technology

Software

Consumer Goods

Industrial Products

Pharmaceuticals

Real Estate

Financial Services

Telecommunications

Professional Services

Automotive

Electronics

Medical Devices

Construction Materials

Retail

Relevant Teams

Sales

Legal

Finance

Human Resources

Tax

Compliance

Business Development

Commercial Operations

Contract Administration

Relevant Roles

Sales Director

Business Development Manager

Sales Operations Manager

Legal Counsel

Commercial Director

Chief Revenue Officer

Sales Representative

Channel Manager

Regional Sales Manager

Vice President of Sales

Contract Manager

Compliance Officer

Tax Manager

Human Resources Director

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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