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Sales Representative Agreement

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Agreement with Sales Representative to Sell Contracts for Cleaning Services

Agreement made on the (date), between of , referred to herein as Sales Representative or Representative, and , a corporation organized and existing under the laws of the state of , with its principal office located at , referred to herein as Company.

Whereas, Company has offered to appoint Representative as an authorized sales representative of in accordance with the terms and conditions set forth in this Agreement and for the term provided in this Agreement; and

Whereas, Representative has expressed his willingness to become an authorized sales representative of in accordance with the terms and conditions set forth in this Agreement.

Now, therefore, for and in consideration of the mutual covenants contained in this agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. Appointment

Company appoints Representative as an authorized Sales Representative of for the period and in accordance with the terms and conditions as provided in this Agreement.

2. Services

The services for which Representative is appointed exclusive sales representative are limited to those products set forth in Exhibit A to this Agreement, which Exhibit is incorporated into this Agreement and made a part of it by this reference, and which services are referred to in this Agreement as the Services.

3. Territory

The territory in which Representative is appointed as an authorized sales Representative for the Services shall be limited to that geographical area, or areas, defined and described as follows:

Such geographical area or areas are referred to in this Agreement as the Territory.

4. Services

During the term of this Agreement, Representative agrees that he will actively promote the sale of Services throughout the Territory and to this end will:

A. Promote the sale of the Services through a sales program including personal and mail solicitation of customers and prospective customers;

B. Regularly report to Company the status of sales and sales potential of the Services within the Territory;

C. Provide prompt and continuing after sale service and customer liaison;

D. Assure that sales aids such as brochures, drawings, product specifications, sales literature, and other information as may be furnished to Representative by Company from time to time, and which is defined by Company as being for the express purpose of promoting sales, are distributed to customers and prospective customers on a timely basis throughout the Territory; and

E. Prepare cleaning estimates for potential customers.

5. Confidentiality

Information furnished by Company to Representative with respect to the Services and their application, installation, and repair that is designated by Company as confidential or proprietary shall be held by Representative in confidence and used only for the purposes set forth in this Agreement during the term of this Agreement. All such confidential and proprietary information, including all copies of such information, and any other information not specifically designated by Company for release to the public that may come into the possession of Representative during the term of this Agreement, including all copies of such information, shall be delivered to Company when requested to do so by Company without making or retaining copies or excerpts of such information.

6. Training

Representative agrees to be available at reasonable times and places for training on the Services and their application. Such training shall be provided by Company to the extent necessary to help Representative to fulfill his obligations under this Agreement.

7. Compensation

The compensation to be paid by Company to Representative under this Agreement shall consist of the following

A. A commission of on sales of the Services within the Territory, such commission to be computed based upon the net invoice price of such sale of Services within the Territory. Net invoice price is defined as that price actually invoiced to and paid by the customer, less any sales, use or excise taxes, and any discount as may be common in the trade. Commissions due and payable shall be determined as provided below in this Agreement.

B. An additional commission for every commercial building cleaning contract of one year or more. This additional commission shall be paid for one year from the date of the first payment made by said commercial customer.

C. Sales Representative’s performance and character shall be evaluated ninety days from the date of this Agreement and a raise in commission will be considered by Company.

D. Commissions shall be due and payable only upon sales for which full and complete payment has been received from the customer. Company will issue commission payments and/or commission statements to Representative on a basis. Should any cleaning contract sold by Sales Representative be cancelled for any reason, no further commissions regarding such contract shall be made after the commission is paid on the last payment made pursuant to such cleaning contract.

8. Representative’s Expenses

Representative will be reimbursed for all reasonable out-of-pocket costs and expenses that he incurs in fulfilling his obligations under this Agreement. What constitutes reasonable shall be in the Company’s sole discretion.

9. Indemnification

Sales Representative agrees to hold Company harmless and to indemnify Company from and against any and all liability that may occur as the result of Sales Representative's acts or omissions under this Agreement or otherwise.

10. Duration and Termination

A. This Agreement shall be effective for a period of one year from the effective date stated above, and shall automatically be renewed for similar -year periods unless at least days prior to the expiration of any such -year period either party has sent the other party notice of nonrenewal indicating that this Agreement will not be renewed at the end of the period, in which event it shall terminate at the end of such period.

B. In addition to the right to terminate this Agreement as set out above, this Agreement may be terminated by either party, for cause or without cause at any time, upon days' prior written notice.

C. For orders accepted by Company on or before the effective date of termination and which orders would otherwise be commissionable as provided in this Agreement, Company will pay to Representative the normal commission upon delivery and receipt of payment for such orders. In addition, and provided Representative has identified pending orders, in writing, Company may accept orders for Services from within the Territory for up to days after the effective date of termination and pay to Representative the normal commission on such orders when such orders result from Representative’s sales efforts prior to the effective date of termination of this Agreement.

11. Rights on Termination

Upon termination of this Agreement, all rights and obligations of the parties under this Agreement shall be extinguished except rights and obligations that shall have accrued prior to the effective date of termination and those surviving termination as otherwise provided in this Agreement.

12. No Liability on Termination

The right of termination of this Agreement pursuant to Section 10 of this Agreement is absolute and neither Company nor Representative shall incur any liability by reason of such termination, each of the parties mutually releasing the other from any claim of any nature (including, but not limited to, damages sustained on account of loss of prospective profits, or on investments, contracts, leases, or other commitments) resulting from or arising out of such termination, provided, however, that nothing in this section shall be construed as a release of any obligation that shall have accrued prior to the effective date of such termination and which is preserved pursuant to Section 10 of this Agreement.

13. Orders Subject to Acceptance

All sales contracts received by Company from Representative or from Representative's customers shall be subject to acceptance by Company under such terms and conditions as Company may deem necessary under the circumstances.

14. Compliance with Law

Representative agrees that he will not violate any applicable law or regulation of any country or political subdivision of a country in performing or purporting to perform any act arising out of or in connection with this Agreement. Pursuant to this paragraph, Representative agrees to maintain such records as required by the applicable laws and regulations and to provide all written assurances required by Company in connection with this paragraph.

15. Severability

The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. If any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision.

16. No Waiver

The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

17. Governing Law

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of .

18. Notices

Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

19. Attorney’s Fees

In the event that any lawsuit is filed in relation to this Agreement, the unsuccessful party in the action shall pay to the successful party, in addition to all the sums that either party may be called on to pay, a reasonable sum for the successful party's attorney fees.

20. Mandatory Arbitration

Any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

21. Entire Agreement

This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

22. Modification of Agreement

Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

23. Assignment of Rights

The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party.

24. In this contract, any reference to a party includes that party's heirs, executors, administrators, successors and assigns, singular includes plural and masculine includes feminine.

WITNESS our signatures as of the day and date first above stated.

(Name of Company)

By:

(Signature of Officer)

(Printed name & Office in Corporation)

(Signature of Sales Representative)

(Printed name)

(Signature of Sales Representative) _________________________

By:

(Printed name & Office in Corporation)


(Signature of Officer)

Enter text✕

What a Sales Representative Agreement Covers

A Sales Representative Agreement is a written contract that defines the relationship between a principal (company) and an independent sales representative or agency. It specifies the scope of the representative's territory and customers, compensation and commission terms, performance expectations, exclusivity or non‑compete clauses, term and termination mechanics, confidentiality and IP protections, expense allocation, compliance requirements, and dispute resolution. The agreement documents reporting duties, sales targets, and how commissions are calculated and paid. Properly executed, it governs responsibilities, limits liability, and provides a basis for enforcing commission and non‑disclosure provisions.

Why a Clear Agreement Matters

A precise Sales Representative Agreement reduces disputes, clarifies commission triggers, and protects confidential information while aligning sales incentives with business goals.

Why a Clear Agreement Matters

Who Typically Prepares and Signs This Agreement

Companies, independent sales agents, recruiters, and inhouse sales teams commonly use this agreement when establishing compensated selling relationships.

  • Employers and manufacturers who appoint external sales reps to grow market coverage in defined territories.
  • Independent sales representatives and brokers hired to solicit orders and receive commissions under commission schedules.
  • Channel partners and distributors who require written terms for exclusivity, lead ownership, and reimbursement rules.

Use it whenever you formalize commission-based selling, change sales territories, or add new independent reps to protect rights and set expectations.

Core Clauses to Include in a Professional Agreement

A complete Sales Representative Agreement organizes commercial and legal terms so both parties know performance requirements, payment mechanics, and dispute resolution methods.

Parties

Identify legal names and entity types for the principal and the representative, including addresses and contact details for notices.

Scope

Define territory, product lines, customer segments, permitted sales activities, and any exclusivity or carve‑outs to avoid ambiguity.

Compensation

State commission rates, payable events, calculation method, timing of payments, chargebacks, and treatment of refunds or returns.

Term & Termination

Specify initial term, renewal mechanics, termination for cause or convenience, notice periods, and post‑termination obligations.

Confidentiality

Preserve trade secrets and customer lists with nondisclosure obligations, permitted disclosures, and duration of confidentiality covenants.

Dispute Resolution

Select governing law, forum or arbitration, and remedies for breach including injunctive relief and recovery of collection costs.

Essential Data Fields to Capture

Representative Name: Full legal name
Principal Name: Company legal entity
Effective Date: MM/DD/YYYY format
Territory: Geographic or account list
Commission Schedule: Rate and triggers
Signature Block: Signer name and title

Step-by-Step: Completing the Agreement

Follow these sequential steps to prepare, review, and finalize a Sales Representative Agreement with clarity and compliance.

  • 01
    Gather Information: Collect legal names, tax IDs, territory details, and prior agreements.
  • 02
    Draft Terms: Insert compensation, term, duties, and IP clauses tailored to your business model.
  • 03
    Review Legal: Have counsel review non‑compete, indemnity, and governing law provisions.
  • 04
    Execute: Sign, date, and distribute fully executed copies to all parties.

Configuring an Online Signing Workflow

When preparing the agreement for electronic signature, set fields and authentication to match the agreement's sensitivity and required auditability.

Field Configuration
Signature Field Required for each signer; include name and date fields
Initials Field Optional for page‑by‑page acknowledgement
Attachment Field Allow upload of required certificates or licenses
Authentication Choose email link, SMS code, or KBA for stronger identity proofing

Typical Electronic Signing Flow

A typical eSignature workflow includes upload, field placement, signer routing, authentication, signing, and audit trail generation.

  • Upload Document: Sender uploads the final agreement file (PDF or DOCX).
  • Place Fields: Add signature, initial, and date fields where required.
  • Add Signers: Enter signer emails and set signing order if needed.
  • Send & Track: Send invites; platform records timestamps, IP, and completion history.

Digital Signing and Platform Considerations

Choose eSignature settings that match legal needs, authentication strength, and audit requirements before sending the document.

  • File Formats: PDF and DOCX supported
  • Integrations: CRM and cloud storage compatibility
  • Authentication: Email, SMS, KBA options

Timing and Key Dates to Track

Track contractual deadlines for commission payment, termination notice, renewal windows, and any post‑termination non‑compete survival periods.

Commission Payment Dates:

Specify monthly, quarterly, or milestone payment schedules and exact payable dates.

Notice Periods:

State required notice for termination for convenience or breach (e.g., 30 or 60 days).

Renewal Deadlines:

Identify automatic renewal triggers or notice-to-renew windows to avoid unwanted extensions.

Post-Termination Duties:

Define timeframe for returning confidential information and settling final commissions.

Dispute Timelines:

Include any contractual deadlines for submitting commission disputes or audit requests.

Common Preparation Pitfalls to Avoid

  • Using vague commission formulas that leave interpretation to later reconciliation causes frequent disputes and delayed payments.
  • Omitting territory or customer definitions leads to overlapping assignments and channel conflict between reps or distributors.
  • Failing to specify treatment of returned or refunded sales can create retroactive chargebacks and damage relationships.
  • Relying on unsigned or improperly executed versions allows repudiation claims; ensure signatures and dates are present and auditable.

Risks and Contractual Consequences

Breach Damages: Monetary damages possible
Withheld Commissions: Principal may suspend payments
Indemnity Exposure: Rep may face indemnity claims
Tax Reporting: 1099 or backup withholding
Reputational Risk: Customer relations impacted
Enforcement Costs: Legal and collection fees

Sample eSignature Vendor Comparison for Executing the Agreement

Below is a concise comparison of common eSignature features and starting prices. signNow is listed first per platform comparison conventions.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Check vendor Check vendor Check vendor Check vendor
Bulk Send Available on higher tiers Check vendor Check vendor Check vendor Check vendor
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes (BAA) Check vendor Check vendor Check vendor Check vendor

Frequently Asked Questions About Sales Representative Agreements

Answers to common legal, execution, and post‑execution questions to help avoid disputes and ensure enforceability.


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