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Principal Agency Agreement Template for Belgium

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Key Requirements PROMPT example:

Principal Agency Agreement

"I need a Principal Agency Agreement for my Belgian pharmaceutical company to appoint an exclusive commercial agent to distribute medical devices in France and Germany, with the agreement starting from March 1, 2025, including specific provisions for regulatory compliance and minimum quarterly sales targets."

Document background
The Principal Agency Agreement is a crucial commercial document used when a company (the principal) wishes to engage an independent commercial agent to promote and sell their products or services in a specific territory. This agreement, governed by Belgian law, must comply with the stringent requirements of the Belgian Law of 13 April 1995 on Commercial Agency Agreements and relevant EU directives. The document is particularly important as it establishes the framework for the commercial relationship, defining critical elements such as territory rights, commission structures, performance expectations, and termination provisions. It includes mandatory protections for commercial agents as required under Belgian law, including specific notice periods and potential compensation upon termination. The agreement is essential for businesses expanding their market presence through independent representatives while maintaining control over their commercial relationships and ensuring regulatory compliance.
Suggested Sections

1. Parties: Identification and details of the Principal and Agent, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, brief description of the parties' businesses, and their intention to enter into an agency relationship

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

4. Appointment and Scope: Terms of agent's appointment, whether exclusive or non-exclusive, and detailed scope of authority

5. Territory and Products: Definition of geographical area of operation and specific products/services covered by the agreement

6. Agent's Rights and Obligations: Detailed responsibilities of the agent, including promotion, reporting, and compliance requirements

7. Principal's Rights and Obligations: Principal's commitments, including support, training, and information provision

8. Commission Structure: Detailed commission calculations, payment terms, and conditions for commission eligibility as per Belgian law

9. Intellectual Property Rights: Usage rights and restrictions regarding principal's trademarks, logos, and other IP

10. Confidentiality: Obligations regarding confidential information and trade secrets

11. Duration and Termination: Term of agreement, notice periods, and grounds for termination as per Belgian law

12. Post-Termination: Rights and obligations after termination, including compensation and indemnity provisions

13. General Provisions: Standard clauses including notices, amendments, entire agreement, and governing law

Optional Sections

1. Minimum Performance Requirements: Used when specific sales targets or performance metrics are required; includes consequences of failure to meet targets

2. Sub-Agents: Include when the agent may be permitted to appoint sub-agents, specifying conditions and approval processes

3. Stock Handling: Required if the agent will maintain inventory or handle physical products

4. Marketing and Advertising: Include when specific marketing obligations or restrictions need to be detailed

5. Non-Compete: Used when restrictions on competitive activities during and after the agreement are required

6. Data Protection: Detailed section required when significant personal data processing is involved

7. Insurance: Include when specific insurance requirements are needed for the agent

8. Force Majeure: Optional but recommended for long-term agreements to address unforeseen circumstances

Suggested Schedules

1. Schedule 1 - Products: Detailed list of products or services covered by the agency agreement

2. Schedule 2 - Territory: Detailed description or map of the geographical territory, including any excluded areas

3. Schedule 3 - Commission Rates: Detailed commission structure, including any variations by product or customer type

4. Schedule 4 - Reporting Requirements: Templates and specifications for regular reports required from the agent

5. Schedule 5 - Marketing Guidelines: Principal's requirements for marketing and promotional activities

6. Appendix A - Principal's Trademarks: List of trademarks and usage guidelines

7. Appendix B - Minimum Performance Targets: Specific sales or performance targets if applicable

8. Appendix C - Operating Procedures: Detailed procedures for order processing, customer service, and other operational matters

Authors

Alex Denne

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

Relevant legal definitions
















































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Relevant Industries

Manufacturing

Wholesale Distribution

Retail

Technology and Software

Industrial Equipment

Consumer Goods

Professional Services

Financial Services

Pharmaceutical

Automotive

Chemical Industry

Construction Materials

Agricultural Products

Telecommunications

Relevant Teams

Legal

Sales

Business Development

Commercial Operations

Compliance

Contract Administration

International Trade

Distribution

Channel Management

Finance

Relevant Roles

Chief Executive Officer

Commercial Director

Sales Director

Business Development Manager

Legal Counsel

Contracts Manager

Sales Operations Manager

Channel Manager

Regional Sales Manager

Commercial Agent

Distribution Manager

Chief Commercial Officer

Compliance Officer

General Counsel

Sales Territory Manager

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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