This agreement is for a term of years and terminable at will after the initial term. Sales Representative is to receive a residual commission for sales to new customer (those he brings to the Company) for a certain number of years after this Agreement has expired or been terminated. The appointment of sales representative is nonexclusive since the sale representative will sell for more than one company.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
A California Sales Representative Agreement with Residual Payments for New Customers after Contract Terminates is a legal contract that outlines the terms between a company (the principal) and a sales representative (the agent) operating in California. This agreement includes provisions for residual payments that the sales representative is entitled to receive even after the termination of the contract. Residual payments are one form of post-termination compensation that ensures sales representatives continue to receive commissions for new customers they have acquired during the contract's duration. These payments are typically a percentage of the commission earned from subsequent sales generated by these customers. The California Sales Representative Agreement with Residual Payments for New Customers after Contract Terminates serves to protect the rights and interests of both parties involved. Here are some key components that may be included in different types of such agreements: 1. Commission Structure: This section specifies the commission rate or percentage that the sales representative will receive for each sale. It may include different rates for various products or services. 2. Residual Payments: The agreement should clearly define the conditions under which residual payments will be calculated and disbursed. This can include defining the duration during which residual payments will be made after contract termination. 3. New Customer Definition: The agreement should specify the criteria for identifying new customers. It may define new customers as those with whom the sales representative has established a direct sales relationship during the contract term. 4. Termination Clauses: Different types of agreements may include various termination clauses, such as termination for cause, termination without cause, or termination by mutual agreement. These clauses define the circumstances under which the contract can be terminated and the rights and obligations of both parties upon termination. 5. Non-Compete and Confidentiality: To protect the principal's interests, the agreement may include clauses that prevent the sales representative from engaging in competing business activities or from disclosing confidential information. 6. Dispute Resolution: This section outlines the procedures for resolving any disputes that may arise between the principal and the sales representative. It may specify methods such as mediation, arbitration, or litigation. 7. Governing Law: The agreement typically defines which state's laws will govern the interpretation and enforcement of the contract. In this case, as the agreement is specific to California, it will be governed by California state laws. It is worth noting that specific types of California Sales Representative Agreements with Residual Payments for New Customers after Contract Terminates may vary depending on the industry, products or services being sold, and the unique needs of the principal and sales representative. Therefore, it is recommended to consult with legal professionals familiar with California labor laws and sales representative agreements to ensure compliance and protection of both parties' rights.A California Sales Representative Agreement with Residual Payments for New Customers after Contract Terminates is a legal contract that outlines the terms between a company (the principal) and a sales representative (the agent) operating in California. This agreement includes provisions for residual payments that the sales representative is entitled to receive even after the termination of the contract. Residual payments are one form of post-termination compensation that ensures sales representatives continue to receive commissions for new customers they have acquired during the contract's duration. These payments are typically a percentage of the commission earned from subsequent sales generated by these customers. The California Sales Representative Agreement with Residual Payments for New Customers after Contract Terminates serves to protect the rights and interests of both parties involved. Here are some key components that may be included in different types of such agreements: 1. Commission Structure: This section specifies the commission rate or percentage that the sales representative will receive for each sale. It may include different rates for various products or services. 2. Residual Payments: The agreement should clearly define the conditions under which residual payments will be calculated and disbursed. This can include defining the duration during which residual payments will be made after contract termination. 3. New Customer Definition: The agreement should specify the criteria for identifying new customers. It may define new customers as those with whom the sales representative has established a direct sales relationship during the contract term. 4. Termination Clauses: Different types of agreements may include various termination clauses, such as termination for cause, termination without cause, or termination by mutual agreement. These clauses define the circumstances under which the contract can be terminated and the rights and obligations of both parties upon termination. 5. Non-Compete and Confidentiality: To protect the principal's interests, the agreement may include clauses that prevent the sales representative from engaging in competing business activities or from disclosing confidential information. 6. Dispute Resolution: This section outlines the procedures for resolving any disputes that may arise between the principal and the sales representative. It may specify methods such as mediation, arbitration, or litigation. 7. Governing Law: The agreement typically defines which state's laws will govern the interpretation and enforcement of the contract. In this case, as the agreement is specific to California, it will be governed by California state laws. It is worth noting that specific types of California Sales Representative Agreements with Residual Payments for New Customers after Contract Terminates may vary depending on the industry, products or services being sold, and the unique needs of the principal and sales representative. Therefore, it is recommended to consult with legal professionals familiar with California labor laws and sales representative agreements to ensure compliance and protection of both parties' rights.
