The Sales Mandate Agreement is a crucial document for businesses seeking to expand their sales operations in Indonesia through appointed representatives. This agreement type is commonly used when a company (Principal) wishes to engage a third party (Agent) to promote and sell their products or services without establishing their own sales force. The document must comply with Indonesian legal requirements, including the Civil Code (KUHPerdata) and relevant trade regulations. A well-structured Sales Mandate Agreement should clearly define the relationship between parties, specify territorial rights, establish commission structures, set performance targets, and include provisions for intellectual property protection and confidentiality. It's particularly important in the Indonesian context to address local business practices, regulatory compliance, and cultural considerations while ensuring the agreement remains enforceable under local law.
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1. Parties: Identification of the Principal and Sales Agent/Mandate holder, including their complete legal names, addresses, and registration details
2. Background: Context of the agreement, brief description of the Principal's business, and purpose of appointing the Sales Agent
3. Definitions: Key terms used throughout the agreement, including but not limited to Products, Territory, Customers, Sales Targets
4. Appointment and Scope: Terms of appointment, whether exclusive or non-exclusive, and detailed scope of the sales mandate
5. Territory and Products: Defined geographical area of operation and specific products/services covered under the mandate
6. Rights and Obligations: Detailed responsibilities of both parties, including sales targets, reporting requirements, and support services
7. Commission Structure: Details of compensation, commission rates, calculation methods, and payment terms
8. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination
9. Confidentiality: Protection of confidential information and trade secrets
10. Intellectual Property: Usage rights and restrictions regarding trademarks, logos, and other IP
11. Governing Law: Specification of Indonesian law as governing law and jurisdiction details
12. Dispute Resolution: Process for resolving disputes, including mediation and arbitration procedures
1. Non-Competition: Restrictions on Agent's involvement with competing businesses - include when exclusivity is important
2. Training and Support: Details of training and support provided by Principal - include for complex products/services
3. Insurance: Insurance requirements for the Agent - include for high-value products or risky sectors
4. Compliance with Anti-Corruption Laws: Specific anti-corruption provisions - include for international trade or government sector sales
5. Data Protection: Data handling and privacy requirements - include when personal data processing is involved
6. Force Majeure: Provisions for unforeseen circumstances - include for long-term agreements
7. Assignment: Rights and restrictions regarding transfer of the agreement - include when needed to restrict transfer
1. Schedule A - Products and Services: Detailed list of products/services covered under the mandate, including specifications and pricing
2. Schedule B - Territory Map: Detailed map and description of the authorized sales territory
3. Schedule C - Commission Rates: Detailed commission structure, including any variations based on product type or sales volume
4. Schedule D - Sales Targets: Quarterly/annual sales targets and any associated bonus structures
5. Schedule E - Reporting Templates: Standard formats for sales reports and other required documentation
6. Schedule F - Principal's Trademarks: List of authorized trademarks and usage guidelines
7. Appendix 1 - Standard Operating Procedures: Detailed procedures for order processing, customer service, and other operational matters
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Consumer Goods
Industrial Products
Technology
Pharmaceuticals
Automotive
Construction Materials
Electronics
Telecommunications
Food and Beverage
Retail
Chemical Products
Textiles
Agricultural Products
Relevant Teams
Legal
Sales
Commercial
Business Development
Compliance
Operations
Finance
Contract Administration
Corporate Secretarial
Risk Management
Relevant Roles
Sales Director
Commercial Director
Business Development Manager
Legal Counsel
Contract Manager
Sales Operations Manager
Regional Sales Manager
Chief Commercial Officer
Managing Director
Compliance Officer
Sales Territory Manager
Channel Partner Manager
Distribution Manager
Chief Executive Officer
General Counsel
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