Sales Rep Agreement Template for South Africa

This Sales Rep Agreement is essential for businesses operating in South Africa that engage external sales representatives or agencies to market and sell their products or services. The document is structured to comply with South African legal requirements, including the Labour Relations Act, Consumer Protection Act, and POPIA. It's particularly important for establishing clear independent contractor relationships, defining commission structures, and setting territorial rights. The agreement helps prevent potential disputes by clearly outlining responsibilities, performance expectations, and termination conditions. It's commonly used across various industries where companies need to expand their sales reach without directly employing sales staff, and includes specific provisions for protecting the company's interests while providing a fair framework for sales representatives to operate within.

1. Parties: Identification of the Company and the Sales Representative, including full legal names and registration details

2. Background: Context of the agreement, nature of the Company's business, and purpose of engaging the Sales Representative

3. Definitions: Key terms used throughout the agreement, including 'Territory', 'Products', 'Customers', 'Commission', etc.

4. Appointment and Territory: Formal appointment of the Sales Representative and definition of their geographic or customer territory

5. Independent Contractor Status: Clear statement of the representative's status as an independent contractor, not an employee

6. Duties and Responsibilities: Detailed description of the Sales Representative's obligations and performance expectations

7. Commission Structure: Details of commission calculations, payment terms, and conditions for earning commission

8. Reporting and Administrative Requirements: Requirements for sales reports, customer information, and other administrative duties

9. Intellectual Property and Confidentiality: Protection of company IP, trademarks, and confidential information

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

11. Term and Termination: Duration of the agreement and circumstances for termination

12. Post-Termination Obligations: Obligations and procedures following termination

13. General Provisions: Standard legal clauses including notices, governing law, etc.