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Sales Partnership Agreement for Belgium

Sales Partnership Agreement Template for Belgium

A comprehensive legal agreement governed by Belgian law that establishes and regulates a sales partnership between a principal company and a sales partner. This document incorporates specific requirements under Belgian commercial agency laws and EU regulations, detailing the terms of appointment, territory rights, commission structures, and mutual obligations. The agreement ensures compliance with Belgian mandatory provisions regarding notice periods, compensation, and territory protection while addressing key aspects such as performance targets, reporting requirements, and termination conditions. It includes specific provisions for data protection under GDPR and competition law compliance under both Belgian and EU frameworks.

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What is a Sales Partnership Agreement?

The Sales Partnership Agreement is a crucial document for businesses looking to expand their sales operations through partnership arrangements in Belgium. It serves as the foundational contract governing the relationship between a principal company and its sales partners, whether they are agents, representatives, or distributors. This agreement is particularly important in the Belgian context due to specific legal protections afforded to commercial agents and distributors under Belgian law, including mandatory provisions regarding termination notice periods and goodwill indemnity. The document covers essential aspects such as territory definitions, commission structures, performance expectations, and compliance requirements, while ensuring alignment with both Belgian commercial law and EU regulations. It's typically used when companies want to establish a formal sales relationship without creating an employment relationship, requiring careful consideration of Belgian labor law implications.

What sections should be included in a Sales Partnership Agreement?

1. Parties: Identification and details of the contracting parties

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of appointment, territory, and scope of the sales partnership

5. Duration and Termination: Term of the agreement and termination provisions, including notice periods as per Belgian law

6. Obligations of the Principal: Principal's duties, including provision of materials, support, and information

7. Obligations of the Sales Partner: Partner's duties, sales targets, reporting requirements, and conduct standards

8. Commission Structure: Detailed commission calculations, payment terms, and conditions

9. Intellectual Property Rights: Usage rights and restrictions regarding trademarks, logos, and other IP

10. Confidentiality: Protection of business information and trade secrets

11. Non-Competition and Non-Solicitation: Restrictions during and after the agreement term

12. Data Protection: GDPR compliance and data handling requirements

13. Governing Law and Jurisdiction: Confirmation of Belgian law application and dispute resolution

14. General Provisions: Standard clauses including severability, entire agreement, and amendments

What sections are optional to include in a Sales Partnership Agreement?

1. Minimum Performance Requirements: Include when specific sales targets or KPIs are essential to the relationship

2. Training and Support: Include when the principal will provide specific training programs or support systems

3. Marketing and Promotion: Include when there are specific marketing obligations or restrictions

4. Insurance Requirements: Include when specific insurance coverage is required from either party

5. Inventory Requirements: Include when the partner needs to maintain specific stock levels

6. Sub-contractors: Include when the partner may need to engage sub-agents or sub-contractors

7. Force Majeure: Include when specific provisions for unforeseen circumstances are needed

8. Compliance with Anti-Corruption Laws: Include when dealing with public sector or high-risk markets

What schedules should be included in a Sales Partnership Agreement?

1. Territory Definition: Detailed description of geographical areas covered by the agreement

2. Commission Calculations: Detailed breakdown of commission structures, including examples

3. Products and Services: List of products/services covered by the agreement

4. Performance Targets: Specific sales targets and KPIs

5. Technical Requirements: Any technical specifications or standards to be maintained

6. Reporting Ƶ: Standard forms for regular reporting

7. Brand Guidelines: Guidelines for use of principal's branding and marketing materials

8. Data Processing Agreement: Detailed GDPR-compliant data processing terms

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Belgium

Publisher

Ƶ

Document Type

Contract to Sell

Cost

Free to use

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