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The Independent Contractor Sales Commission Agreement is essential for businesses operating in Pakistan that engage external sales representatives on a commission basis. This document is particularly relevant when companies want to expand their sales reach without increasing their direct employee headcount. The agreement, governed by Pakistani law, clearly establishes the independent nature of the relationship, protecting both the company and the contractor. It includes detailed provisions for commission calculations, payment terms, territorial rights, and performance expectations, while ensuring compliance with Pakistani tax and commercial regulations. Companies should use this agreement whenever engaging independent sales contractors to prevent misclassification issues and establish clear operational parameters. The document supports various sales models across different industries while maintaining compliance with local legal requirements.

1. Parties: Identifies the contracting parties - the company and the independent sales contractor, including their full legal names, addresses, and registration details if applicable

2. Background: Explains the context of the agreement, including the company's business, the contractor's expertise, and their intention to enter into an independent sales relationship

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

4. Appointment and Scope: Establishes the contractor's appointment as an independent sales representative and defines the scope of authority

5. Independent Contractor Status: Clearly establishes the relationship as independent contractor, not employment, specifying contractor's responsibility for own taxes and expenses

6. Territory and Products: Defines the geographic area and/or customer segments where the contractor can operate and specifies the products/services they are authorized to sell

7. Commission Structure: Details the commission rates, calculation methods, and any variations based on product type or sales volume

8. Payment Terms: Specifies when and how commissions will be paid, including payment frequency, method, and any conditions precedent

9. Contractor's Obligations: Lists the contractor's duties, including sales targets, reporting requirements, and professional conduct standards

10. Company's Obligations: Outlines the company's responsibilities, including providing product information, support, and training

11. Term and Termination: Specifies the agreement duration, renewal terms, and conditions for termination by either party

12. Confidentiality: Protects company's confidential information and trade secrets

13. Non-Compete and Non-Solicitation: Restricts contractor's ability to compete or solicit customers/employees during and after the agreement

14. Governing Law and Dispute Resolution: Specifies Pakistani law as governing law and outlines dispute resolution procedures