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Sales Rep Agreement Template for Philippines

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Key Requirements PROMPT example:

Sales Rep Agreement

"I need a Sales Rep Agreement for my tech company based in Manila, appointing an exclusive sales representative for our software products in the Visayas region, with a minimum sales target of 5M PHP quarterly and a graduated commission structure starting from March 2025."

Document background
The Sales Rep Agreement serves as a crucial document for businesses operating in the Philippines seeking to expand their sales reach through independent representatives. This agreement type is particularly important in the Philippine market, where companies often rely on local sales representatives to penetrate various regions and market segments. The document establishes clear boundaries between independent contractor status and employment relationships, crucial under Philippine labor law, while detailing commission structures, territories, and performance expectations. It includes provisions compliant with local commercial codes and agency regulations, making it suitable for both domestic and international companies operating in the Philippine market. The Sales Rep Agreement should be carefully structured to address specific industry requirements while maintaining flexibility for different business models and sales approaches.
Suggested Sections

1. Parties: Identification of the Principal company and the Sales Representative, including complete 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, Customers, Commission, etc.

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

5. Rights and Obligations of Sales Representative: Core duties, sales targets, reporting requirements, and professional conduct expectations

6. Principal's Obligations: Support, training, materials, and information to be provided by the principal

7. Commission Structure: Calculation method, payment terms, and conditions for earning commission

8. Term and Termination: Duration of agreement, renewal terms, and grounds for termination

9. Confidentiality: Protection of trade secrets, customer information, and business data

10. Non-Competition and Non-Solicitation: Restrictions during and after the agreement term

11. Independent Contractor Status: Clarification of relationship as independent contractor, not employee

12. General Provisions: Standard clauses including governing law, notices, amendments, and dispute resolution

Optional Sections

1. Product Training Requirements: Specific training obligations and certification requirements, include when products are technical or require specialized knowledge

2. Performance Metrics: Detailed KPIs and evaluation criteria, include for more structured sales programs

3. Marketing and Advertising: Guidelines for marketing activities and brand usage, include when rep will conduct marketing

4. Sub-agents: Terms for appointing sub-agents, include when sub-agents are permitted

5. Insurance Requirements: Specific insurance coverage requirements, include for high-value products or services

6. Data Protection: Detailed data handling procedures, include when handling sensitive customer data

7. Minimum Purchase Requirements: Minimum sales quotas or targets, include for exclusive territories

8. Product Returns and Warranties: Handling of returns and warranty claims, include for physical products

9. Online Sales Provisions: Rules for online sales and digital platforms, include for e-commerce activities

Suggested Schedules

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

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

3. Schedule C - Territory Description: Detailed description of geographical boundaries or customer segments

4. Schedule D - Sales Targets: Specific sales targets and any associated bonus structures

5. Schedule E - Reporting Templates: Standard forms for sales reports and activity logging

6. Appendix 1 - Operating Procedures: Detailed procedures for order processing, customer service, and communication

7. Appendix 2 - Marketing Guidelines: Brand guidelines and approved marketing practices

8. Appendix 3 - Customer List: List of existing customers or assigned accounts

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 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

Consumer Goods

Technology

Healthcare

Industrial Equipment

Electronics

Pharmaceuticals

Food and Beverage

Automotive

Construction Materials

Telecommunications

Software

Professional Services

Retail

Financial Services

Relevant Teams

Sales

Legal

Business Development

Commercial Operations

Contract Administration

Human Resources

Compliance

Finance

Operations

Channel Management

Relevant Roles

Sales Director

Business Development Manager

Commercial Director

Legal Counsel

Sales Operations Manager

Regional Sales Manager

Channel Manager

Chief Revenue Officer

Sales Representative

Account Executive

Territory Manager

Contract Administrator

Compliance Officer

HR Director

Chief Commercial Officer

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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