The Sales Contractor Agreement is essential for businesses operating in Pakistan who wish to engage independent sales representatives without creating an employer-employee relationship. This document is designed to comply with Pakistani contract law, particularly the Contract Act 1872 and relevant commercial legislation. It is typically used when a company wants to expand its sales reach through external contractors while maintaining flexibility and minimizing direct employment obligations. The agreement covers crucial aspects such as commission structures, sales territories, performance metrics, and protection of business interests, while ensuring clear delineation of the contractor's independent status. This template is specifically structured to address Pakistani legal requirements for commercial representation and includes necessary provisions for tax compliance, dispute resolution, and business documentation under local law.
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1. Parties: Identification of the contracting parties - the company and the sales contractor
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Key terms used throughout the agreement
4. Appointment and Scope: Formal appointment of contractor and detailed scope of sales services
5. Independent Contractor Status: Clear statement of independent contractor relationship and not employment
6. Contractor's Obligations: Detailed responsibilities, sales targets, reporting requirements, and service standards
7. Company's Obligations: Support, resources, and information to be provided by the company
8. Commission and Payment Terms: Compensation structure, commission rates, payment schedule, and expenses
9. Term and Termination: Duration of agreement and circumstances for termination
10. Confidentiality: Protection of confidential information and trade secrets
11. Non-Compete and Non-Solicitation: Restrictions on competitive activities and client solicitation
12. Intellectual Property: Ownership and usage of IP, including marketing materials
13. Indemnification: Mutual indemnification obligations and liability limitations
14. Governing Law and Dispute Resolution: Applicable law and method of resolving disputes
15. General Provisions: Standard clauses including notices, amendments, and severability
1. Performance Incentives: Additional bonus structures for exceeding targets, used when implementing performance-based incentives
2. Territory Exclusivity: Grants of exclusive sales territories, used when territorial rights are being assigned
3. Training Requirements: Mandatory training programs and certifications, included when specific qualifications are required
4. Marketing and Branding: Guidelines for using company branding, included when contractor will represent company brand
5. Insurance Requirements: Specific insurance coverage requirements, used for high-risk sales activities
6. Data Protection: Specific data handling requirements, included when dealing with sensitive customer data
7. Sub-contracting: Terms for engaging sub-contractors, used when sub-contracting is permitted
1. Schedule A - Commission Structure: Detailed breakdown of commission rates, calculations, and payment terms
2. Schedule B - Sales Targets: Specific sales targets and performance metrics
3. Schedule C - Territory Definition: Detailed description of assigned sales territory if applicable
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 sales reporting
6. Appendix 1 - Company Policies: Relevant company policies applicable to contractors
7. Appendix 2 - Code of Conduct: Ethical guidelines and professional conduct requirements
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