Independent Contractor Agreement with Sales Representative
Agreement made, effective as of the _______day of _________________, 20_____, by
and between __________________________________ (Name of Corporation) , a corporation
organized and existing under the laws of the State of _______________, with its principal office
located at ____________________________________________________________________
________________ (street address, city, county, state, zip), referred to in this Agreement as
Company , and ________________________ (Name of Sales Representative) of _________
__________________________________________ (street address, city, county, state, zip) ,
referred to in this Agreement as S ales Representative .
I. Acceptance of Appointment
Company is a manufacturer and distributor for the following described products:
(describe) _________________________________________________________________.
Sales Representative desires to market and sell said products in the following described
territory: (describe territory) ________________________________ ______ subject to terms,
conditions, and covenants set forth in this Agreement. Sales Representative agrees to comply
with the terms and to perform all conditions contained in this Agreement.
II. Sales Territory
Sales Representative shall have the right to offer for sale (specify products) ________
____________________________________ , hereinafter called Products, to customers in the
following territory: (describe territory) ____________________________________________.
III. Solicitation and Taking of Orders
A. Sales Representative shall solicit and take orders for sales of Products
distributed by Company , at the list price current at the time of solicitation.
B. Requests for formal bids and quotations, prices on modifications, quantity prices,
and special equipment or options not shown on price lists will be furnished by Company .
C. The list price of all Products shall be ___________________________________
_____________________________________________ (F.O.B., Company’s address) .
All shipping charges, taxes, export or import duties, packing and boxing, or any other
charges not specifically provided in this Agreement shall be additions to the effective list
price.
IV. Acceptance of Orders
A. All orders are to be forwarded to Company for acceptance. No order shall
constitute a binding obligation upon Company until it shall be accepted by Company.
Sales Representative shall have no authority to accept any order on behalf of Company.
Company reserves the right to reject any order for whatever reason it may deem
appropriate without obligation to Sales Representative for commission.
B. All orders accepted by Company shall be subject to Company’s standard terms
and conditions of sale. Company shall have the sole authority to change any terms or
conditions.
C. Sales Representative shall make no settlement or collections on any account,
unless so authorized in writing by Company. The authority of Sales Representative shall
be strictly limited to the solicitation and taking of orders.
V. Commissions
Company shall pay Sales Representative , and Sales Representative shall accept from
Company , in full payment for Sales Representative s ervices under this Agreement,
compensation of $___________________ (dollar amount of annual compensation) per year,
payable (e.g., monthly) _____________ on or before the ______ day of each month while this
Agreement shall be in force.
VI. Sales Representative’s Responsibilities
A. Sales Representative shall exert his best efforts to promote sales and marketing
to all customers within the above-specified territory.
B. Sales Representative shall furnish, as he develops, the following information to
Company:
1. Current activities of Sales Representative by written _________________
(weekly, monthly or quarterly) reports.
2. Competitive marketing problems, and the current developments in Sales
Representative's territory.
3. Information on poor credit risk customers.
4. All complaints, comments, and critical remarks from customers.
VII. Expenses
Sales Representative shall pay all of his own expenses in connection with the solicitation
of sales under this Agreement. The only obligation of Company is to pay the applicable
commissions specified in this Agreement.
VIII. Duration of this Agreement
A. This Agreement shall become effective on the date stated above, and shall
remain in effect for a period of one year unless terminated for breach or as provided in this
Agreement. At the expiration date of this Agreement, said Agreement shall be considered
renewed for an additional period of one year, provided neither party submits a notice of
termination.
B. This Agreement may be terminated by either mutual agreement of Sales
Representative and Company or by written notice of either of the parties to the other party of an
intention to terminate the Agreement. Any such written notice shall serve automatically to
terminate this Agreement _______ (number) days after the date such notice is sent to the other
party via certified mail.
IX. Assignment
This Agreement is personal to the parties and may not be assigned by Sales
Representative or Company.
X. Authority of Sales Representative
Sales Representative shall have no right or authority, either express or implied, to
assume or create, on behalf of Company, any obligation or responsibility of whatsoever kind or
nature.
XI. Indemnification
Sales Representative agrees to indemnify and hold harmless Company, its agents, and
employees, from and against any and all claims, damages, losses, and expenses, including
reasonable attorneys' fees arising out of performance of Sales Representative's obligations
under this Agreement that are caused in whole or in part by Sales Representative's negligent
act or omission.
XII. Noncompetition
On termination of this Agreement, Sales Representative agrees that he will not sell
products in competition with Company in the sales territory described in Paragraph II for a
period of _____ years. Sales Representative agrees that this noncompetition section is
necessary to protect Company’s business, and that Sales Representative’s violation of this
paragraph would result in irreparable harm to Company. If Sales Representative breaches this
paragraph, Company shall be entitled to injunctive relief in addition to any other remedies legally
available. This paragraph shall survive termination of this Agreement.
XIII. Independent Contractor .
Sales Representative is in a business independent from that of Company, and is to be
regarded as an independent contractor. Neither party is in any sense to be regarded as the
principal or agent, or employer or employee, of the other.
XIV. Mandatory Arbitration
Notwithstanding the foregoing, and anything herein to the contrary notwithstanding, 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.
XV. 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.
XVI. 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 evidenced in writing signed by each
party or an authorized representative of each party.
XVII. Governing Law
It is agreed that this Agreement shall be governed by, construed, and enforced in
accordance with the laws of the State of __________________.
XVIII. 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 thereafter 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.
XIX. Effect of Partial Invalidity
The invalidity of any portion of this Agreement will not and shall not be deemed to affect
the validity of any other provision. In the event that 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 deletion of the invalid
provision.
XX. 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.
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.
IN WITNESS WHEREOF, the parties have signed this Agreement as of the day and
date first above mentioned.
_____________________________
Company
____________________________ By_____________________________
Sales Representative _____________________________
(Name and Office in Corporation)
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