Including Essential Provisions in a Sales Representative Agreement


Companies seeking a way to streamline their sales process and create time to focus on their product lines may find that sales representatives are an efficient and effective way to drive sales, perhaps by tapping into existing networks of prospective buyers or by allowing the company to reallocate its human resources to more pressing internal needs.

Since the sales representative agreement often ties the representative’s compensation to his work production through a commission structure, the incentives for both manufacturer and representative align. A well-drafted contract between the manufacturer and the representative can ensure a fair, mutually beneficial relationship.

When seeking … Read the rest

How to Avoid Litigation Over Unpaid Sales Commissions


Editor’s note: It’s always interesting to see parallels to representative-principal issues turn up in other industries. In this article we look at the similarities to the representative-principal relationship in the relationships between fashion showrooms (which operate somewhat like representatives) and fashion designers (which operate similarly to principals.)

It’s a common story in the fast-paced world of fashion showrooms: A designer (principal) wants his or her work featured in a showroom and access to the showroom owner’s (representative’s) contacts and relationships in order to sell his or her line. The showroom agrees and upholds its end of the bargain, selling millions … Read the rest