What is the Commercial Representation Mandate Agreement?
The Commercial Representation Mandate Agreement is used when a company (principal) instructs a sales representative (agent) to permanently promote the conclusion of business or the sale of products/services in a specific area, in exchange for a commission.
With the sales representative contract, it is possible to regulate some of the most important elements of the relationship. For example, you can delimit the area in which the representative will operate, determine the commissions for the concluded deals and provide for a non-compete agreement to prohibit the representative from working for competitors after the termination of the relationship.
The sales representative is an entrepreneur, in fact, he assumes the risk of not receiving the commission if the business he has promoted is not successful.
When using the sales representative contract
The sales representative can be a natural person (e.g. a single agent who personally promotes the products) or a company (e.g. an agency that uses its own employees and collaborators). The representative can promote any type of contract, for example, he can promote the purchase and sale of products or the conclusion of service contracts. However, it will not be able to promote employment contracts.
The trade representative contract can be used to charge both agents monomandatari both agents multiform. In the first case, the representative promotes the products (or services) only of the principal, in the second case, however, the representative is free to promote the conclusion of business also for other principals, who are not however competitors.
With this contract, the company can appoint a commercial representative to directly conclude business with customers (agent with a mandate of representation), or instruct the agent to promote the business, reserving the possibility of concluding or refusing them (agent without a representative mandate).
The commercial representation mandate provides for a real obligation of the commercial representative to promote the products (or services) on an ongoing basis. While, if the activity is of an occasional nature, the contract for a business finder must be used. Furthermore, if the representative acts on his own account by purchasing the goods to resell them to third parties, the distribution contract or the estimation contract (sales account) must be used.
What does the model of the commercial representation mandate contract contain?
Our commercial representation mandate agreement meets all legal requirements. The main clauses included concern:
- Purpose: the products or services that the sales representative undertakes to promote or sell
- Zone: the territory within which the sales representative carries out his work (e.g. a region, a part of a region, or even the entire national territory)
- Exclusive: to prohibit the sales representative from selling products (or services) of competitors in the assigned area
- Executive customers: to reserve for the company some customers with whom it will deal directly
- Commissions: to establish the commission (e.g. a percentage of the deal) and specify the time of payment to the sales representative (e.g. the conclusion of the deal or the collection of the price paid by the customer)
- Duration: the mandate of representation can be for a term (e.g. for one year, two years, etc.) or for an indefinite period, i.e. without a deadline
- Reimbursement of expenses: to choose whether to reimburse some expenses incurred by the sales representative
- Advance commission: to advance part of the commissions to the sales representative for a limited period of time, at the beginning of the activity
- Non-competition agreement: to prohibit the sales representative from not operating in competition after the end of the agency mandate, he can enter into a non-competition agreement for no more than 24 months
- English language: if the sales representative or the company are foreigners it may be useful to draft the contract in English to simplify the negotiation
At the end of the interview, we will guide you step by step through all the necessary subsequent steps.
Information you need
To complete the commercial representation contract, all the details of the agent and the principal company are required.
The document can be modified in all its parts without time limits. Don’t worry so if you don’t have all the information available during the interview, you can always enter it later.
- Commercial representation
- Mandate of representation
- Commercial representation mandate
- Contract for commercial agents
- Agency mandate
- Agency contract
- International agency agreement
- Agency agreement in English
Other useful templates and facsimiles
- Business Agent Agreement: to allow a partner to occasionally promote a company’s products or services
- Employment Contract for Employees: to hire an employee, a worker or a manager, even with a commission on sales
- Distribution Agreement: to entrust a person with the purchase of goods or services and then revise them to third parties in a specific territory
- Franchising contract: to create a network of affiliated points of sale and spread your products