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About this template
What is this template?
This document is a formal appointment of an independent contractor to act as a sales representative for IT products. It contains specific tiered commission thresholds in Rupees and a three-year post-termination non-compete clause. It is not an employment contract, as the Agent is expressly defined as an independent contractor.
When should you use it?
Use this document when hiring an individual or entity to expand computer hardware sales into specific geographical territories on a commission-only basis. If the representative is to be a full-time employee with a base salary, use an Employment Agreement instead.
What's inside
| Clause | Name | What it does |
|---|---|---|
| 1 | Appointment and Term | Appoints the Agent for a period of three years to sell computers and software within specified territories. |
| 2 | Agent's Duties | Obliges the Agent to promote sales, maintain separate account books, and refrain from selling competing goods without consent. |
| 6 | Non-compete Covenant | Prohibits the Agent from acting as a selling agent for akin computer goods for three years after termination. |
| 8 | Company's Rights | Reserves the Company's right to decline orders at its absolute discretion and sell products directly within the territories. |
| 10 | Commission and Payment | Sets a tiered commission percentage based on invoice prices and requires accounts to be furnished periodically. |
| 13 | Termination | Permits the Company to terminate the agreement immediately if the Agent is restrained from duties for a specified number of months. |
Who it's for
- an Indian company appointing an independent contractor to handle sales of IT equipment in specific states
- a computer hardware manufacturer requiring a non-compete restriction after an agency relationship ends
- a software vendor setting up tiered commission structures for an external sales representative
How long it runs and how it's signed
Law it's drafted under
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