International Sales Commission Agreement Template for Pakistan

The International Sales Commission Agreement serves as a crucial legal framework for businesses looking to expand their sales operations across international borders through appointed representatives or agents. This document, governed by Pakistani law, is essential when a company (the Principal) wishes to engage sales representatives in foreign territories without establishing their own local presence. The agreement comprehensively covers commission structures, sales territories, performance metrics, and compliance requirements while adhering to Pakistani foreign exchange regulations and international trade laws. It's particularly valuable for companies seeking to maintain control over their international sales operations while incentivizing local representatives through commission-based arrangements. The document ensures clarity in the commercial relationship while providing necessary protections for both parties under Pakistani legal jurisdiction.

1. Parties: Identification of the Principal and the Sales Agent/Representative, including full legal names, registration details, and addresses

2. Background: Context of the agreement, brief description of the parties' businesses, and their intention to enter into a sales commission arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including 'Territory', 'Products', 'Commission', 'Net Sales', etc.

4. Appointment and Territory: Formal appointment of the agent, specification of territorial scope, and exclusivity/non-exclusivity provisions

5. Term and Termination: Duration of the agreement, renewal provisions, and circumstances for termination

6. Commission Structure: Detailed explanation of commission rates, calculation methods, and payment terms

7. Payment Terms: Timeline for commission payments, currency, payment methods, and banking details

8. Agent's Obligations: Key responsibilities, performance targets, reporting requirements, and conduct standards

9. Principal's Obligations: Support to be provided, information sharing, and product-related obligations

10. Intellectual Property: Usage rights for trademarks, logos, and marketing materials

11. Confidentiality: Protection of confidential information and trade secrets

12. Non-Competition: Restrictions on competing activities during and after the agreement

13. Governing Law and Jurisdiction: Specification of Pakistani law as governing law and jurisdiction for disputes

14. General Provisions: Standard clauses including force majeure, entire agreement, amendments, and notices