Exclusive Sales Rep Agreement

Some jurisdictions, particularly Minnesota and Puerto Rico, go further and prohibit a manufacturer from terminating or extending a sales representation contract, unless there is a good reason to do so. In other words, even if an agreement is to expire within a specified time frame, the manufacturer can only terminate or refuse the extension, unless the commercial is in violation or there is no other good reason to do so. 4. The determination of the commission must be clear and not be unnecessarily enthet – being paid is what it is all about. So make sure you get paid for your successful efforts. If you are an exclusive representative, which means that you have an exclusive domain or account responsibility, you should receive a commission on all sales in the territory. Commissions should not be contingent on your “satisfactory” service performance. Avoid Rep agreements that you designate as exclusive representatives or with exclusive territory that also bind commissions only to sales you have obtained or requested or that result from your efforts. Such a language is diametrically opposed to a legitimate exclusive domain. If the representative takes the time to read, understand, question and even negotiate the terms of a Rep agreement at the beginning, there should be no surprises and, hopefully, problems.

This is the difference between fire safety and extinguishing a furious fire. But too often, employees learn late that their multi-year contracts can be terminated after 30 days, that they do not receive commissions after termination, or that their client has the right to unilaterally amend the Rep agreement, including by lowering commission rates. This agreement is established in such a way as to be in force for a fixed period set out in paragraph 14.1. At the end of this period, the contract expires. Other options are available here (for example, automatic renewals. B unless one of the parties is intended to terminate the conditions of non-renewal, renewal of scooters, etc.). In the context of the commercial agent, automatic termination is preferable, since it is the furthest away after the expiry of the termination of the fundamental rights “at-will”, although it obliges the parties to renew or renegotiate their terms.