The International Sales Representative Agreement is essential for businesses seeking to expand their sales presence in international markets through independent representatives rather than direct employees. This agreement, governed by Indian law, provides a legal framework for appointing and managing sales representatives who will promote and sell products or services in specified foreign territories. It addresses key aspects such as the scope of authority, commission structures, performance expectations, and compliance with both Indian and international regulations. The document is particularly important for Indian companies expanding globally and foreign companies establishing sales networks through Indian entities, ensuring compliance with Indian legal requirements including the Indian Contract Act, 1872, FEMA regulations, and relevant tax laws. It helps protect both parties' interests while clearly defining their rights, responsibilities, and the commercial terms of their relationship.
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1. Parties: Identification of the Principal and Sales Representative, including full legal names, registration details, and addresses
2. Background: Context of the agreement, brief description of the parties' businesses, and purpose of the arrangement
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Territory: Formal appointment of the representative and definition of the geographic territory covered
5. Scope of Authority: Details of what the representative can and cannot do on behalf of the principal
6. Products and Services: Description of products/services the representative is authorized to promote
7. Duties and Obligations: Detailed responsibilities of both the representative and the principal
8. Commission Structure: Commission rates, calculation methods, and payment terms
9. Term and Termination: Duration of the agreement and conditions for termination
10. Non-Competition and Confidentiality: Restrictions on competitive activities and protection of confidential information
11. Intellectual Property Rights: Usage rights and restrictions regarding trademarks, logos, and other IP
12. Compliance with Laws: Obligations to comply with applicable laws and regulations
13. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law
14. General Provisions: Standard legal provisions including notices, amendments, assignment, and severability
1. Performance Targets: Specific sales targets and performance metrics, used when the principal wants to set measurable objectives
2. Training and Support: Details of training and support provided by the principal, relevant when significant product knowledge is required
3. Marketing and Promotion: Specific requirements for marketing activities, included when the representative has marketing responsibilities
4. Insurance Requirements: Specific insurance coverage requirements, important in high-risk industries or territories
5. Data Protection: Specific provisions for handling personal data, essential when dealing with EU customers or other jurisdictions with strict data protection laws
6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in volatile markets or regions
7. Sub-Representatives: Terms for appointing sub-representatives, included when this flexibility is needed
8. Minimum Purchase Requirements: Minimum order quantities or values, relevant for product-based arrangements
9. Customer Service Standards: Specific customer service requirements, important for customer-facing roles
10. Reporting Requirements: Detailed reporting obligations, used when specific monitoring is needed
1. Schedule 1: Territory Map: Detailed map or description of the authorized territory
2. Schedule 2: Product List: Comprehensive list of products/services covered by the agreement
3. Schedule 3: Commission Rates: Detailed commission structure, including any variations by product or customer type
4. Schedule 4: Sales Targets: Specific sales targets and performance metrics
5. Schedule 5: Reporting Templates: Standard forms for regular reporting requirements
6. Schedule 6: Principal's Trademarks: List of trademarks and usage guidelines
7. Appendix A: Operating Procedures: Detailed operational procedures and guidelines
8. Appendix B: Customer Service Standards: Detailed customer service requirements and metrics
9. Appendix C: Compliance Requirements: Specific compliance requirements and procedures
10. Appendix D: Training Requirements: Details of required training programs and certifications
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