Agency is a relationship based on an agreement authorizing one person, the agent, to act for another, the principal. For example an agent may negotiate and make contracts with third persons on behalf of the principal. Actions of an agent can obligate the principal to third persons. Actions of an agent may also give a principal rights against third persons.
The term agency is often used in other ways. For example, the term is used sometimes to show that a person has the right to sell certain products. A very important aspect of the law of agency deals with determining the scope of the agent's authority.
In this form, the agent only has authority to solicit orders and has no authority, right or power to accept any order, or to assume or create any obligation on behalf of the principal.
In this form, the salesman receives as compensation a commission on sales, but no salary.
Wisconsin General Sales Agency Agreement: A Comprehensive Description The Wisconsin General Sales Agency Agreement is a legal contract that establishes a mutually beneficial relationship between a principal or brand owner and an agent or sales agency in the state of Wisconsin. This agreement outlines the terms, conditions, and responsibilities of both parties involved in the sale and distribution of goods or services in the Wisconsin market. This agreement serves as a framework to define the roles and obligations of each party, ensuring a clear understanding of their respective rights and responsibilities. It is a vital document that helps foster a strong business relationship and promotes a successful sales operation. Key Elements of a Wisconsin General Sales Agency Agreement: 1. Parties involved: This agreement clearly identifies the principal or brand owner who possesses the rights to the goods or services being sold, and the agent or sales agency who will act as an intermediary to promote, market, and sell the products. 2. Territory and exclusivity: The agreement specifies the territory in which the agent will have the exclusive right to sell the principal's products or services. It may restrict the agent from selling competing brands or expanding into new territories without the principal's consent. 3. Duration and termination: The contract outlines the duration of the agreement, which can be a fixed period or ongoing until either party chooses to terminate it. It also includes provisions for termination, such as breach of contract, non-performance, or violation of agreed-upon terms. 4. Sales targets and quotas: This agreement may include specific sales targets or quotas that the agent needs to achieve during a given period. These targets are often negotiated between both parties and are intended to ensure that the principal's products receive adequate sales focus and effort. 5. Compensation and commission: The contract discusses the payment terms, including the commission structure for the agent. The commission can be based on a percentage of sales or a fixed amount per unit sold. The agreement may also address reimbursement of certain expenses incurred by the agent, such as marketing costs or travel expenses. 6. Intellectual property: If the principal's products or services are protected by intellectual property rights (trademarks, copyrights, etc.), the agreement will cover the agent's responsibilities regarding the protection and proper usage of such intellectual property. Types of Wisconsin General Sales Agency Agreements: 1. Exclusive Sales Agency Agreement: This type of agreement grants the agent exclusive rights to sell the principal's products or services within a defined territory. The agent is typically prohibited from representing competing brands during the agreement's term. 2. Non-Exclusive Sales Agency Agreement: In this agreement, the principal may appoint multiple agents to sell their products or services within a specific territory. These agents are allowed to represent other non-competing brands concurrently. In conclusion, the Wisconsin General Sales Agency Agreement is a crucial document that outlines the framework for a successful sales relationship between a principal and an agent or sales agency. By clearly defining the roles, territories, compensation, and other essential terms, this agreement aims to create a mutually beneficial partnership, ensuring the successful distribution and sales of products or services in the state of Wisconsin.
