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A sales representative is an agent who sells someone else's products. The agent is making sales for someone else. A distributor buys someone else's products and resells them. For both the contract subjects are similar. The subjects usually covered are: 1. Date of agreement and parties The sales rep or distributor wants exclusive rights for as long as possible with no quotas and at stable prices or commissions. The person whose products are sold usually wants the reverse. Term short long Renewal option
to do so option
to do so Termination option
on short notice or for failure to meet
quota only for
cause Territory specified/non-exclusive anywhere
and/or exclusive Goods specific
and exclusive any
goods of any seller Repurchase
of goods on termination by supplier no yes Non-compete
after termination yes no Commission
v. purchase and sale Distributors
with their own premises usually buy from the
supplier. This requires more capital but also
allows more control over the sales price. Sometimes
distributors do not handle the product. The
distributor gets the orders and the products are
shipped direct to the ultimate customer by the
supplier. The contract and invoices provide that
the product is sold by the supplier to the
distributor and by the distributor to the ultimate
customer. || See My Securities Arbitration Web Site || || See My Probate Web Site || || See My Wills, Trusts, and Estate Planning Web Site ||
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Donald M.
Thompson * Illinois Business Attorney - 55 W. Monroe #3950;
Chicago, IL 60603 |
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