Sales Subcontractor Agreement Template for South Africa

The Sales Subcontractor Agreement is designed for businesses operating in South Africa that wish to expand their sales capacity through independent contractors rather than employed salespeople. This document is particularly relevant in today's flexible working environment where companies seek to maintain agile sales forces while clearly delineating between employment and independent contractor relationships. The agreement includes essential provisions required under South African law, including compliance with tax regulations, labor laws, and consumer protection requirements. It's specifically structured to protect both parties' interests while establishing clear performance metrics, commission structures, and operational procedures. The document is commonly used when companies want to expand into new territories or markets without establishing direct employment relationships, need specialized sales representation for specific products or services, or wish to implement a performance-based sales model with minimal fixed costs.

1. Parties: Identification of the contracting parties - the main contractor and the sales subcontractor

2. Background: Context of the agreement, including the main contractor's business and need for sales subcontractors

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Scope: Terms of appointment and detailed scope of sales activities to be performed by the subcontractor

5. Independent Contractor Status: Clear establishment of independent contractor relationship and disclaimer of employment relationship

6. Duties and Responsibilities: Detailed responsibilities of the subcontractor including sales targets, reporting requirements, and service standards

7. Territory and Products: Definition of geographic territory and products/services the subcontractor is authorized to sell

8. Compensation and Payment Terms: Commission structure, payment terms, and any additional compensation arrangements

9. Term and Termination: Duration of agreement and conditions for termination by either party

10. Confidentiality: Protection of confidential information and trade secrets

11. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after the agreement

12. Intellectual Property: Protection and usage rights of trademarks, logos, and other IP

13. Compliance with Laws: Obligation to comply with relevant South African laws and regulations

14. Indemnification: Mutual indemnification provisions for potential claims or damages

15. General Provisions: Standard boilerplate clauses including notices, entire agreement, governing law, etc.