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