Definition for: Sales Representative Agreement
A "sales representative agreement" is a contract by a company offering products for sale and an individual salesperson that will represent and sell the company's products. The sales representative is typically paid on commission, based on a percentage of the dollar amount of products sold. Key provisions of sales representative agreements include:
- Products to be sold
- Sales territory
- Commission and payment terms
- Termination provisions
- Covenants and obligations of the sales representative
- Support provided by the company
- Dispute resolution mechanism
