No contract is perfect. There will always be problems and problems in any dynamic business relationship. However, if you take the time to review, understand and negotiate a contract and make sure it clearly recalls the term agreed with the client, you will probably have the legal basis for an excellent and mutually beneficial business relationship. Finally, contractors and representatives should consider themselves as a team working together to promote the sale of the client`s products. A good rep agreement is part of achieving this common goal. 1. An overview before reaching an agreement on the final terms of an agreement, the negotiating parties may present a written starting point specifying an initial offer and certain general conditions. This first written document is called a letter of intent (sometimes called a letter of intent or a letter of intent). A Memorandum of Understanding sets out the basic conditions of a proposed transaction, including price, asset description, restrictions and closing conditions. 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. This non-exclusive agreement exists between , a person has (n) (the „representative“) and , (n) (the „company“). 1. Make your deal first, the essential conditions of the De Rep agreement should not come as a surprise. You should reflect what you have already discussed and agreed with the potential customer. Will you be an exclusive or non-exclusive representative? What is your territory? Will the term of your contract be extended for a specified period or will it be automatically extended and continued until termination? What is the commission rate? All of these issues must be addressed and agreed upon before receiving Rep`s approval.

The relationship between the parties under this agreement is independent and no joint venture, partnership, agency, employer-employee relationship or similar relationship is established in or through this agreement. Neither party can take or create obligations on behalf of the other party and no party can take any action that results in such authority. 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. I hate to provide such messages when I know that the result could have been different if the representative had taken the time to begin to understand the content of Rep`s agreement.