Sales agency agreement, primarily for the appointment of an exclusive sales agent who is authorised to negotiate and enter into contracts of sale on the principal’s behalf.
Agents (sales or marketing) will usually have either exclusive, non-exclusive or sole rights in their defined territory.
- Exclusive rights prevent the principal from himself actively seeking sales in the agent’s territory and from appointing other agents or distributors there. The principal may, however (subject to possible competition law concerns), reserve certain rights to himself, such as the right to continue to supply certain identified customers or classes of customers in the territory without involving the agent.
- Sole rights prevent the principal from appointing another agent for the territory and (depending on the drafting) other distributors and other types of resellers, but will not prevent the principal himself actively seeking sales in the territory at the level of customers (wholesaler/retailer/end-user) at which the agent is operating.
- Non-exclusive rights leave the principal free to appoint other agents and resellers and himself actively to seek sales in the territory at the same level of customers as the agent.