This sales agent agreement template is used in an intercompany transaction between a principal and a sales agent. The sales agent performs the typical functions to introduce the principal’s products to customers and solicit orders, including but not limited to establishing and maintaining client relationships, identifying sales prospects, convincing clients to buy the principal’s products, communicating new product and service opportunities and developing marketing plans. The principal, as a rule, ships and invoices the customer directly and also sets prices, terms, and other conditions of sale.

The sales agent will usually be responsible to its principal for the results of its work but not subject to significant control with respect to the manner in which that work is carried out. The sales agent will not be subject to detailed instructions from the principal as to the conduct of the work. The sales agent will only incur the risks that relate to the sales activities it is engaged for by principal.

This agreement template is used to state the rights and responsibilities and to substantiate the at arm’s length character of the transaction between the a typical principal and a sales agent. Common terms in this agreement template inter alia cover the ordering and shipping of the products, price and payment terms, record keeping, intellectual property rights, indemnification and termination.