The Independent Sales Representative Agreement is essential for businesses operating in Indonesia that wish to expand their sales reach through independent contractors rather than employees. This document is typically used when a company wants to engage professional sales representatives to promote and sell their products or services without creating an employment relationship. The agreement must comply with Indonesian commercial and agency laws while clearly establishing the independent nature of the relationship. It includes detailed provisions on territory rights, commission structures, performance metrics, and compliance requirements. This type of agreement is particularly important in the Indonesian market, where clear differentiation between employees and independent contractors is crucial for legal compliance and risk management.
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1. Parties: Identifies the principal company and the independent sales representative, including full legal names and addresses
2. Background: Explains the context of the agreement and the principal's desire to engage the sales representative
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Scope: Details the appointment of the sales representative and the scope of their authority
5. Territory and Products: Specifies the geographic territory and products/services the representative is authorized to sell
6. Independent Contractor Status: Clearly establishes the independent contractor relationship and disclaims employment relationship
7. Duties and Responsibilities: Outlines the specific duties and responsibilities of the sales representative
8. Commission and Payment Terms: Details the commission structure, calculation method, and payment terms
9. Sales Targets and Performance: Establishes minimum performance requirements and sales targets
10. Reporting Requirements: Specifies the reports and documentation the representative must provide
11. Confidentiality: Protects confidential information and trade secrets
12. Non-Competition and Non-Solicitation: Restricts competitive activities during and after the agreement
13. Term and Termination: Specifies the duration and conditions for termination
14. Post-Termination Obligations: Outlines obligations after the agreement ends
15. Governing Law and Dispute Resolution: Specifies Indonesian law as governing law and dispute resolution procedures
1. Training and Support: Include when the principal provides specific training or support services
2. Marketing and Advertising: Include when the representative has specific marketing responsibilities or restrictions
3. Expenses and Reimbursement: Include when certain expenses will be reimbursed by the principal
4. Insurance Requirements: Include when specific insurance coverage is required
5. Intellectual Property Rights: Include when the representative will handle branded materials or create intellectual property
6. Data Protection: Include when the representative will handle personal or sensitive data
7. Compliance with Anti-Corruption Laws: Include when dealing with government entities or high-risk markets
8. Sub-Representatives: Include when the representative is permitted to appoint sub-representatives
1. Schedule 1 - Products and Services: Detailed list of products/services the representative is authorized to sell
2. Schedule 2 - Territory Description: Detailed description of the geographic territory, including any exclusions
3. Schedule 3 - Commission Structure: Detailed commission rates, tiers, and calculation methods
4. Schedule 4 - Sales Targets: Specific sales targets and performance metrics
5. Schedule 5 - Reporting Templates: Templates for required sales and activity reports
6. Schedule 6 - Principal's Policies: Relevant company policies the representative must follow
7. Appendix A - Power of Attorney: If required, specific powers granted to the representative
8. Appendix B - Confidential Information: Specific list of information considered confidential
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