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Independent Sales Contractor Agreement for Philippines

Independent Sales Contractor Agreement Template for Philippines

This Independent Sales Contractor Agreement is a comprehensive legal document governed by Philippine law that establishes and regulates the relationship between a company and an independent sales contractor. The agreement outlines the terms and conditions under which the contractor will provide sales services, including commission structures, performance expectations, and territorial rights, while clearly establishing the contractor's status as an independent entity rather than an employee. It incorporates relevant provisions from the Civil Code of the Philippines and ensures compliance with local tax regulations and commercial laws, while providing necessary protections for both parties' interests.

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What is a Independent Sales Contractor Agreement?

This Independent Sales Contractor Agreement is designed for use in the Philippines when a company wishes to engage independent sales professionals without creating an employer-employee relationship. The document incorporates essential elements required under Philippine law, including provisions from the Civil Code, Labor Code, and relevant tax regulations. It is particularly useful for businesses expanding their sales channels through independent contractors, providing a clear framework for commission-based compensation, performance expectations, and territorial rights. The agreement includes comprehensive provisions for protecting the company's interests while ensuring the contractor's independence, making it suitable for various industries from retail to professional services. The document addresses key aspects such as commission structures, sales targets, reporting requirements, and compliance with local regulations governing independent contractor relationships.

What sections should be included in a Independent Sales Contractor Agreement?

1. Parties: Identifies the contracting parties - the company and the independent sales contractor

2. Background: Explains the context of the agreement and the parties' intentions

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Scope: Establishes the contractor's appointment and defines the scope of sales services

5. Independent Contractor Status: Clearly establishes the nature of the relationship as independent contractor, not employment

6. Term and Termination: Specifies the duration of the agreement and conditions for termination

7. Compensation and Commission Structure: Details the payment terms, commission rates, and calculation methods

8. Sales Targets and Performance Metrics: Establishes expected sales targets and how performance will be measured

9. Duties and Responsibilities: Outlines specific duties, responsibilities, and expectations of the contractor

10. Territory and Exclusivity: Defines the geographical area or market segment for sales activities

11. Reporting Requirements: Specifies reporting obligations and frequency

12. Confidentiality: Protects company's confidential information and trade secrets

13. Non-Competition and Non-Solicitation: Restricts competitive activities during and after the agreement

14. Intellectual Property: Addresses ownership and use of intellectual property

15. Representations and Warranties: States the parties' assertions and guarantees

16. Indemnification: Outlines mutual indemnification obligations

17. Governing Law and Dispute Resolution: Specifies applicable law and method of resolving disputes

18. General Provisions: Contains standard boilerplate clauses

What sections are optional to include in a Independent Sales Contractor Agreement?

1. Insurance Requirements: Required when the contractor needs to maintain specific insurance coverage

2. Equipment and Resources: Include when the company provides specific tools or resources to the contractor

3. Training and Support: Necessary when the company offers specific training programs or support services

4. Expenses and Reimbursement: Include when the contractor may incur reimbursable expenses

5. Customer Data Protection: Required when the contractor handles customer personal data

6. Marketing Materials Usage: Include when the contractor will use company marketing materials

7. Subcontracting: Necessary if the contractor may engage subcontractors

8. International Sales: Include for contractors operating in international markets

What schedules should be included in a Independent Sales Contractor Agreement?

1. Schedule A - Commission Structure: Detailed breakdown of commission rates, tiers, and calculation methods

2. Schedule B - Sales Territories: Detailed description of assigned sales territories or market segments

3. Schedule C - Performance Metrics: Specific sales targets and performance indicators

4. Schedule D - Approved Products/Services: List of products or services the contractor is authorized to sell

5. Schedule E - Reporting Ƶ: Standard forms and templates for required reports

6. Appendix 1 - Company Policies: Relevant company policies applicable to contractors

7. Appendix 2 - Code of Conduct: Guidelines for professional conduct and ethical behavior

Authors

Alex Denne

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

Jurisdiction

Philippines

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions






























Clauses





































Relevant Industries

Retail

Real Estate

Insurance

Financial Services

Technology

Manufacturing

Consumer Goods

Pharmaceuticals

Telecommunications

Construction Materials

Automotive

Industrial Equipment

Direct Selling

E-commerce

Relevant Teams

Legal

Sales

Human Resources

Commercial

Business Development

Compliance

Operations

Finance

Administration

Procurement

Relevant Roles

Sales Director

Commercial Director

Business Development Manager

Sales Operations Manager

Channel Manager

Legal Counsel

HR Director

Procurement Manager

Contract Manager

Chief Commercial Officer

Sales Administrator

Independent Sales Representative

Regional Sales Manager

Territory Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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