Sales Commission Agreements

We understand the importance of negotiating fair and balanced Sales Commission Agreements on behalf of our Sales and Manufacturer’s Representative clients. We pride ourselves on making sure all our sales and manufacturer’s representative’s clients have comprehensive sales agreements in place so that they are legally protected when future issues arise, such as unpaid commissions, termination, non-solicitation/non-compete and product liability indemnification. Whether negotiating directly with the principal or providing behind the scenes advice and counsel to our clients who wish to negotiate their sales agreements directly with their principals, we assure that our sales and manufacturer’s representative clients have tight and comprehensive Sales Commission Agreements in place to limit exposure of potentially devastating impacts of being stuck with an unpaid commission.

Are Your Sales Commissions Legally Protected?

Here is a short list of questions that we believe should be considered in drafting a Sales Commission Agreement:

1. Do you have a written Sales Commission Agreement with your principal manufacturer company?
2. Does your Sales Commission Agreement specify the amount of commission, when the commission is earned and when payment of the commission is due?
3. Are you legally protected if your principal terminates your sales relationship with you in order to contract with another competing independent sales representative?
4. Do you have an agreement with your principal manufacturer company that affords you a commission for not just sales that you already earned but also for future sales that the principal will make due to your sales services?
5. Does your Sales Commission Agreement contain an exclusivity provision, which prohibits your client from attempting to solicit a sale individually or with the assistance of another independent sales representative?
6. Does your Sales Commission Agreement obligate the principal to indemnify you if you are sued for any kind of defective product or negligence on the part of the principal?
7. Are you protected or have any legal recourse for future commissions if the principal sells its business to another company?

When deciding whether your Sales Commission Agreements adequately protect your rights and take into account possible future legal issues or ramifications, call our New Jersey Sales Representative Attorneys to discuss all your specific business needs in drafting your agreement.