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Non Exclusive Sales Representative Agreement Template for Pakistan

A Non-Exclusive Sales Representative Agreement under Pakistani law establishes a commercial relationship where a sales representative is authorized to promote and sell products or services on behalf of a principal company, while both parties retain the right to work with other partners. This agreement, governed by Pakistani commercial and contract law, details the scope of representation, commission structure, territories, performance expectations, and mutual obligations while protecting both parties' interests. It incorporates relevant provisions from Pakistan's Contract Act 1872 and other applicable commercial legislation to ensure enforceability and compliance with local legal requirements.

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What is a Non Exclusive Sales Representative Agreement?

The Non-Exclusive Sales Representative Agreement is a crucial document for businesses operating in Pakistan who wish to expand their sales reach while maintaining flexibility in their distribution strategy. This agreement is particularly valuable when companies want to test new markets or maintain multiple sales channels without committing to exclusive arrangements. The document, governed by Pakistani law including the Contract Act 1872 and relevant commercial regulations, comprehensively outlines the relationship between the principal company and the sales representative. It covers essential aspects such as territory definitions, commission structures, performance expectations, and reporting requirements while explicitly preserving both parties' rights to engage in other business relationships. This type of agreement is commonly used in both domestic Pakistani markets and for international companies entering the Pakistani market through local representatives.

What sections should be included in a Non Exclusive Sales Representative Agreement?

1. Parties: Identification of the principal company and the sales representative, including full legal names, addresses, and registration details

2. Background: Context of the agreement, including brief description of the principal's business and the purpose of appointing a sales representative

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

4. Appointment and Scope: Clear statement of non-exclusive appointment, territory designation, and scope of authority

5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination by either party

6. Rights and Obligations of the Representative: Detailed responsibilities, performance standards, reporting requirements, and conduct expectations

7. Rights and Obligations of the Principal: Support to be provided, training, marketing materials, and other commitments

8. Commission Structure: Detailed explanation of commission rates, calculation methods, and payment terms

9. Non-Exclusivity Provisions: Explicit terms regarding the non-exclusive nature and any related restrictions or requirements

10. Confidentiality: Protection of confidential information and trade secrets

11. Intellectual Property: Usage rights and restrictions regarding the principal's trademarks and other IP

12. Governing Law and Jurisdiction: Specification of Pakistani law as governing law and jurisdiction for disputes

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

What sections are optional to include in a Non Exclusive Sales Representative Agreement?

1. Performance Targets: Include when specific sales targets or KPIs are required for the representative

2. Training Requirements: Include when mandatory training programs are part of the relationship

3. Marketing and Promotion: Include when the representative has specific marketing responsibilities or restrictions

4. Customer Data Protection: Include when the representative will handle sensitive customer data

5. Non-Compete: Include when restrictions on representing competing products are needed

6. Insurance Requirements: Include when the representative must maintain specific insurance coverage

7. Sub-Representatives: Include when the representative may be allowed to appoint sub-representatives

8. Export Controls: Include when products are subject to export regulations

9. Force Majeure: Include when specific provisions for unforeseen circumstances are needed

What schedules should be included in a Non Exclusive Sales Representative Agreement?

1. Schedule 1 - Products: Detailed list of products/services the representative is authorized to sell

2. Schedule 2 - Territory: Detailed description or map of the authorized sales territory

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

4. Schedule 4 - Reporting Templates: Standard forms for sales reports and other required documentation

5. Schedule 5 - Performance Metrics: Detailed KPIs and measurement criteria if applicable

6. Appendix A - Marketing Guidelines: Guidelines for use of principal's branding and marketing materials

7. Appendix B - Code of Conduct: Expected standards of business conduct and ethics

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

Jurisdiction

Pakistan

Cost

Free to use

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