Sales Representative Contract Template

This sales representative agreement is effective from [Document.CreatedDate] and is entered between the parties referred to as the “company” and its sales “representative.”

​[Employer.Company], an organization prevailing under the laws of [Employer.State], having its headquarters situated at [Employer.StreetAddress][Employer.City][Employer.State][Employer.PostalCode], has hired [Representative.FirstName][Representative.LastName], residing at [Representative.StreetAddress][Representative.City][Representative.State][Representative.PostalCode] as its sales representative.

​[Employer.Company] grants the right to [Representative.FirstName][Representative.LastName] to perform sales services on its behalf. Both the parties hereto agree to the following terms and conditions:

1. Duties and Obligations of the Sales Representative

Here are the duties and obligations which are to be performed by the sales representative:

The sales representative will perform their sales services in the geographical location known as (Mention the Location Designated to the Sales Representative).

The sales representative agrees to work for (number) days a week per year for (number) hours per day. They will provide a written report of their work every (number) weeks to the sales manager mentioning the number of units sold by them.

In addition, the sales representative also has to keep accurate records of all time spent on calls, meetings, presentations, and other work-related activities. They will inform the sales manager regarding any conflicts, concerns, issues, or customer-related queries arising during the sales operations.

The sales representative is responsible for providing accurate information about the company and its services. They must demonstrate how these services benefit clients and provide evidence for any claims made about the company or product.

2. Remuneration

​[Representative.FirstName][Representative.LastName] is entitled to get a fair fixed remuneration of (Amount of Monthly Salary) by [Employer.Company]. They will be paid monthly as per the payroll schedule of the company.

Besides the monthly fixed remuneration, the sales representative is also entitled to receive a commission of (number)% for every (number) units sold by them.

3. Maintaining Confidentiality

The sales representative agrees to maintain the secrecy of the company’s crucial data, information, and trade secrets. If the representative fails to preserve the confidentiality of the shared credentials, the company has the right to terminate this agreement and take legal action, depending on the severity of the consequences.

The representative will not be entitled to any commission or compensation in such situations.

If the representative wishes to seek voluntary resignation, they must give their sales manager a notice period of (number) (days/months). Moreover, the representative cannot work with the company's competitors for a minimum period of (number) (days/months).

Besides, any evidence, electronic materials, or important documents shared by the company cannot be retained by them upon employment termination.

4. Leaves, Bonuses, and Increment

The sales representative is entitled to (number) days per month of unpaid leave. Apart from it, if they want to seek leave for any causes other than medical, a (number)% of their fixed salary will be deducted for each day's leave. However, if leaves are taken on medical grounds, the representative has to show a medical certificate duly signed by the doctor.

The company shall provide a bonus of (Amount of Bonus) to the representative for working overtime for (number) hours if required in some exceptional situations. Moreover, an increment of (number)% will be added to the fixed monthly salary of the representative if they render their services for a minimum of (number) year/years.

5. Termination of Agreement

If this agreement is terminated, all rights and obligations of the parties will terminate immediately without any liability on either party. However, if any loss is sustained by the company through any actions of the representative while conducting their job duties, the representative is liable to bear the loss.

The company also holds the right to terminate employment immediately in case of wrongdoing. In such circumstances, the representative agrees not to hold the company or its affiliates liable for any compensation.

However, if the company terminates this agreement without any viable reason, the company shall pay the representative an amount equal to (number) months of their salary plus any commissions earned during those (number) months.

The following are the conditions resulting in the termination of the contract:

• If the representative operates outside their designated location

• Misconduct or irregularity regarding the job duties

• Poor performance or consistency in sales services for a prolonged period

• Any fraud or deceit committed by the representative while selling product or services

• Not reporting the accurate information to the sales manager related to the units sold

• Working with any competitive brand part-time dealing in the same segment

• If the company is unable to pay the salary or commission, or bonus to the representative without any reasonable cause

6. Notice Period

If any of the parties described above wish to terminate this agreement at their own will, a notice period of at least (number) days is mandatory. However, if the representative or the company wants to amend any clause or condition, they will have to seek written consent from each other in good faith.

Both parties mutually agree to the terms described above and conditions for the agreement to remain valid.