A Sales Agency Agreement is a legal contract between a manufacturer or supplier of goods (the “principal”) and a sales agent (the “agent”) who acts on behalf of the principal to sell the goods to customers. The agreement sets out the terms and conditions of the agency relationship, including the scope of the agent’s authority, the commission structure, and the responsibilities of each party.
The main purpose of a Sales Agency Agreement legally points to the roles and responsibilities of each party in the sales process.
It provides a framework for the collaboration between the manufacturer and the agent to effectively market, promote, and sell the principal’s products or services in a specific market or territory.