A sales rep agreement is an agreement between a company and an independent contractor, a sales representative, who will represent the company and sell the company’s good or services. Generally, a sales representative will be paid by commission.
The sales rep agreement serves a number of beneficial purposes. It provides the sales representative with the basic conditions, project parameters and terms of payment for his/her service to the company.
The sales rep agreement can also protect the company by, among other things, clarifying the company’s expectations for the sales rep, reaffirming that an employer/employee relationship is not created, and laying out reasons for termination of the relationship.
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