Sales Agency Agreement - Broker and Seller

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Agreement between a seller and a local broker to negotiate and procure sales for seller's products within an exclusive territory.

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This Sales Agency Agreement is between a seller and broker for the sale of products within an exclusive territory. This agreement sets out the names of seller and broker, brief description of the seller's products and a detailed description of the territory in which the products can be sold. It also contains the commission to be earned by the broker, when it will be paid and broker's agreement to regularly canvass the territory in order to sell the products. This type of business arrangement should always be clearly set out in writing. A written Sales Agency Agreement between a Broker and Seller will prove invaluable in the event there are disagreements or misunderstandings surrounding the sale of the products and the specific territory in which they can be sold. This form also contains special formatting procedures to assist you in easily completing this agreement.

This Sales Agency Agreement between Broker and Seller contains the following:
  • Parties: Sets forth the names and addresses of the broker and seller;
  • Products and Territory: Sets forth the products which broker will sell and the specific territorial limits in which the products may be sold exclusively by broker;
  • Commission: Lists the commission rate the broker will be paid and when payment is due;
  • Agreements by Broker: Sets forth that broker will promptly report all sales and keep seller informed of current market trends within the territory;
  • Signatures: Both parties must sign this agreement;
  • Schedule A: Sets out a detailed list of the products which will be sold by broker under this agreement.

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This attorney-prepared packet contains:
  1. General Instructions
  2. Sales Agency Agreement - Broker and Seller
State Law Compliance: This form complies with the laws of all states
This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.
 
 
Sales Agency Agreement
(Broker and Seller)

 

 
THIS AGREEMENT made as of [Date of Agreement (ie. July 1, 2002)] between [Name of Seller] (the "Seller") of [Address of Seller] and [Name of Broker] (the "Broker") of [Address of Broker].
WHEREAS:
(A)   The Seller is a supplier of certain [Briefly Describe Products (ie. Home Cleaning) products (the "Products") listed in Schedule "A" hereto;
(B)   The Seller desires to secure the services of a Broker in [Describe Exclusive Territory of Agent (ie. the State of Texas)] (the "Exclusive Territory") to negotiate the sales of the Products in the Seller's name and for its account; and
(C)   The Broker wishes to secure the right to negotiate sales of the Products in the Exclusive Territory;
IN CONSIDERATION of the premises and covenants and undertakings herein contained it is mutually agreed as follows:
1.   The Seller appoints the Broker as its sole and exclusive representative for the negotiation and sale of the Products within the Territory, subject to the terms and conditions of this Agreement.
2.   All negotiations by the Broker for the account of the Seller shall be conducted in accordance with such prices, terms and conditions as are specified by the Seller.
3.   All orders taken by the Broker shall be subject to confirmation by the Seller and it is understood that the Broker will not obligate or commit the Seller to the sale or delivery of any Products without the Seller's express authorization and direction.
4.   The Seller agrees as follows:
(a)   that the Broker shall be the sole and exclusive representative of the Seller for negotiating sales of the Products in the Territory, and the Seller will not sell Products in the Territory other than those negotiated by the Broker;
(b)   to pay the Broker a commission of [Commission Rate (ie. 10%)] on all sales of Products through orders procured by the Broker, to be computed on the invoice price of the Products sold and delivered, excluding applicable taxes;
(c)   not to enter into any contract with any other sales representative in the Territory during the term of this Agreement;
(d)   to permit the Broker, during the term of this Agreement, to negotiate sales to any and all prospective buyers of the Seller's products throughout the Territory;
(e)   to ship the Products sold as the Broker may specify and as the credit of the buyers will permit, provided that the Seller shall be given sufficient notice of the shipments required to enable it to manufacture or secure and ship the products, and further provided that the Seller shall not be responsible for any shipments of Products which it is unable to fulfill for any reason not within its control;
(f)   to pay the commissions specified not later than the fifteenth (15th) day of the month following the month in which the Products were shipped to and accepted by the buyer; and
(g)   to keep the Broker fully informed of all sales and promotional policies and programs affecting the Territory.
5.   The Broker agrees as follows:
(a)   to carry out in all respects the Seller's instructions with respect to the negotiations of sales of the Products and promptly report to the Seller instances where Broker fails to follow such instructions;
(b)   promptly to report all negotiations of sales of the Products;
(c)   to report to the Seller negotiations of sales with prospective buyers where credit risks exist and to lend every assistance in effecting prompt and full payments by buyers for all deliveries of Products sold. The final determination of credit risks as well as any credit limits to be determined by the Seller;
(d)   to regularly canvass and negotiate the trade in the Territory for the purpose of furthering the sales of Products;
(e)   to keep the Seller informed of current marketing conditions in the Territory and of any significant changes in the Broker's own organization; and
(f)   to adhere strictly to the Seller's schedule of prices, terms and conditions of sale relating to the Products.
6.   This Agreement shall commence on the effective date of this Agreement and shall remain in full force and effect for a period of one (1) year from such date. Thereafter, this Agreement shall be automatically renewed for additional successive periods of one (1) year each, unless either party terminates this Agreement by written notice to the other given not less than sixty (60) days prior to the termination date of this Agreement or any renewal term of this Agreement.
7.   It is understood and agreed that neither the Broker nor its employees shall be considered employees of the Seller and neither party shall in any event be held liable or accountable for any obligations incurred by the other party other than as specified in this Agreement.
8.   This Agreement, including the Schedules hereto, constitutes the entire agreement between the parties relating to the subject matter hereof and, except as stated herein or in the instruments and documents to be executed and delivered pursuant hereto, contain all the representations and warranties of the respective parties relating to the subject matter hereof.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the date first above written.
 
 
 
 
 
 
[NAME OF SELLER]
 
 
 
 
 
[NAME OF BROKER]
 
 
 
 
Schedule "A"Description of Products
[Detailed Description of Products which are the subject of this Agreement)
Number of Pages6
DimensionsDesigned for Letter Size (8.5" x 11")
EditableYes (.doc, .wpd and .rtf)
UsageUnlimited number of prints
Product number#28851
This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.
 
 
Sales Agency Agreement
(Broker and Seller)

 

 
THIS AGREEMENT made as of [Date of Agreement (ie. July 1, 2002)] between [Name of Seller] (the "Seller") of [Address of Seller] and [Name of Broker] (the "Broker") of [Address of Broker].
WHEREAS:
(A)   The Seller is a supplier of certain [Briefly Describe Products (ie. Home Cleaning) products (the "Products") listed in Schedule "A" hereto;
(B)   The Seller desires to secure the services of a Broker in [Describe Exclusive Territory of Agent (ie. the State of Texas)] (the "Exclusive Territory") to negotiate the sales of the Products in the Seller's name and for its account; and
(C)   The Broker wishes to secure the right to negotiate sales of the Products in the Exclusive Territory;
IN CONSIDERATION of the premises and covenants and undertakings herein contained it is mutually agreed as follows:
1.   The Seller appoints the Broker as its sole and exclusive representative for the negotiation and sale of the Products within the Territory, subject to the terms and conditions of this Agreement.
2.   All negotiations by the Broker for the account of the Seller shall be conducted in accordance with such prices, terms and conditions as are specified by the Seller.
3.   All orders taken by the Broker shall be subject to confirmation by the Seller and it is understood that the Broker will not obligate or commit the Seller to the sale or delivery of any Products without the Seller's express authorization and direction.
4.   The Seller agrees as follows:
(a)   that the Broker shall be the sole and exclusive representative of the Seller for negotiating sales of the Products in the Territory, and the Seller will not sell Products in the Territory other than those negotiated by the Broker;
(b)   to pay the Broker a commission of [Commission Rate (ie. 10%)] on all sales of Products through orders procured by the Broker, to be computed on the invoice price of the Products sold and delivered, excluding applicable taxes;
(c)   not to enter into any contract with any other sales representative in the Territory during the term of this Agreement;
(d)   to permit the Broker, during the term of this Agreement, to negotiate sales to any and all prospective buyers of the Seller's products throughout the Territory;
(e)   to ship the Products sold as the Broker may specify and as the credit of the buyers will permit, provided that the Seller shall be given sufficient notice of the shipments required to enable it to manufacture or secure and ship the products, and further provided that the Seller shall not be responsible for any shipments of Products which it is unable to fulfill for any reason not within its control;
(f)   to pay the commissions specified not later than the fifteenth (15th) day of the month following the month in which the Products were shipped to and accepted by the buyer; and
(g)   to keep the Broker fully informed of all sales and promotional policies and programs affecting the Territory.
5.   The Broker agrees as follows:
(a)   to carry out in all respects the Seller's instructions with respect to the negotiations of sales of the Products and promptly report to the Seller instances where Broker fails to follow such instructions;
(b)   promptly to report all negotiations of sales of the Products;
(c)   to report to the Seller negotiations of sales with prospective buyers where credit risks exist and to lend every assistance in effecting prompt and full payments by buyers for all deliveries of Products sold. The final determination of credit risks as well as any credit limits to be determined by the Seller;
(d)   to regularly canvass and negotiate the trade in the Territory for the purpose of furthering the sales of Products;
(e)   to keep the Seller informed of current marketing conditions in the Territory and of any significant changes in the Broker's own organization; and
(f)   to adhere strictly to the Seller's schedule of prices, terms and conditions of sale relating to the Products.
6.   This Agreement shall commence on the effective date of this Agreement and shall remain in full force and effect for a period of one (1) year from such date. Thereafter, this Agreement shall be automatically renewed for additional successive periods of one (1) year each, unless either party terminates this Agreement by written notice to the other given not less than sixty (60) days prior to the termination date of this Agreement or any renewal term of this Agreement.
7.   It is understood and agreed that neither the Broker nor its employees shall be considered employees of the Seller and neither party shall in any event be held liable or accountable for any obligations incurred by the other party other than as specified in this Agreement.
8.   This Agreement, including the Schedules hereto, constitutes the entire agreement between the parties relating to the subject matter hereof and, except as stated herein or in the instruments and documents to be executed and delivered pursuant hereto, contain all the representations and warranties of the respective parties relating to the subject matter hereof.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the date first above written.
 
 
 
 
 
 
[NAME OF SELLER]
 
 
 
 
 
[NAME OF BROKER]
 
 
 
 
Schedule "A"Description of Products
[Detailed Description of Products which are the subject of this Agreement)

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