This is an agreement between a manufacturer and an exclusive or non-exclusive agent who is appointed to promote and sell the manufacturer’s products within a geographical location.
A Sales Agency Agreement lays out the necessary details of appointing an agent, covering both parties’ obligations, liability, manufacturer’s intellectual property and more. It allows the manufacturer to authorise the agent to enter into sales contracts with other parties.
The agreement is particularly helpful for manufacturers who plan to expand their output and sell products broadly in different channels. It comes in handy especially when manufacturers look for help from an agent to sell in other geographical regions.