The main clauses of the agreement (non-competition obligation, trading, representative compensation, administrative costs, compensation, etc.) provided for a number of proposed text options to allow for the most appropriate choice, depending on the person writing the contract (company or representative). In the specific context of distribution agreements, most U.S. states have statutes that protect local trade agents. The main characteristics of statutes of this type are described below. If in doubt, it is imperative to consult the competent lawyer who is licensed in the state concerned, since the obligations of the manufacturer can be considerable under such statutes (although this is usually due diligence, since these commitments generally cannot be excluded by contract). 2. Read the contract carefully at least twice. Make sure you understand. The stewardship of questions — Every word, every sentence, and even the punctuation of a treaty, has legal meaning and meaning. Make sure that the proposed Rep agreement does not contain inherent contradictions. A contract that claims to have a one-year term, but can be terminated for no reason with a 30-day period, is only a 30-day contract.
Make sure this reflects your agreed terms. No contract is perfect. There will always be problems and problems in any dynamic business relationship. However, if you take the time to review, understand and negotiate a contract and make sure it clearly recalls the term agreed with the client, you will probably have the legal basis for an excellent and mutually beneficial business relationship. Finally, contractors and representatives should consider themselves as a team working together to promote the sale of the client`s products. A good rep agreement is part of achieving this common goal. The representative operates on an ongoing basis and the payment is made as a commission on the sales made, although occasionally an agreement can be reached on the payment of royalties for administrative and replacement costs. 6. A client should not have the unilateral right to change commissions, territories and deadlines – although it is appropriate to consider amending a distribution contract, these changes must be negotiated and agreed in writing in advance. An agreement that allows the client to unilaterally change his material terms is hardly a negotiated agreement.