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Sales Rep Contract for Malaysia

Sales Rep Contract Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the terms and conditions of engagement between a company and its sales representative. The document outlines the appointment, territory allocation, commission structure, responsibilities, performance expectations, and compliance requirements in accordance with Malaysian employment and contract laws. It includes provisions for confidentiality, non-competition, and termination while ensuring compliance with local regulations such as the Employment Act 1955 and Contracts Act 1950.

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Sales Rep Contract

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What is a Sales Rep Contract?

The Sales Rep Contract is essential for businesses operating in Malaysia that engage sales representatives to promote and sell their products or services. This document is typically used when a company wants to formalize its relationship with sales representatives, whether they are treated as employees or independent contractors under Malaysian law. The agreement encompasses crucial elements such as territory rights, commission structures, performance metrics, and compliance with local regulations. It's particularly important in the Malaysian context where specific employment and contract laws must be considered, including the Employment Act 1955 and Competition Act 2010. The document serves to protect both parties' interests while establishing clear guidelines for the sales relationship.

What sections should be included in a Sales Rep Contract?

1. Parties: Identification of the company and the sales representative with complete legal names and addresses

2. Background: Brief context of the agreement and the intention to appoint a sales representative

3. Definitions: Key terms used throughout the agreement including 'Territory', 'Products', 'Commission', 'Customers'

4. Appointment and Term: Formal appointment of the representative and duration of the agreement

5. Territory and Products: Defined geographical area and products covered under the agreement

6. Duties and Responsibilities: Detailed obligations of the sales representative

7. Commission Structure: Basic framework of commission calculation and payment terms

8. Reporting Requirements: Regular reporting obligations and documentation requirements

9. Confidentiality: Protection of company's confidential information and trade secrets

10. Non-Competition and Non-Solicitation: Restrictions during and after the agreement term

11. Termination: Grounds and procedures for contract termination

12. General Provisions: Standard clauses including governing law, notices, and amendments

What sections are optional to include in a Sales Rep Contract?

1. Training and Support: Details of company-provided training and support, included when the company offers specific training programs

2. Performance Targets: Specific sales targets and performance metrics, included when the company wants to set measurable goals

3. Expenses and Reimbursement: Policy on business expenses, included when the company will cover certain expenses

4. Intellectual Property Rights: IP ownership and usage rights, included when the representative will be creating or using IP

5. Data Protection: Specific data handling requirements, included when dealing with personal customer data

6. Insurance Requirements: Insurance obligations, included when specific coverage is required

7. Dispute Resolution: Specific procedures for resolving disputes, included when alternative dispute resolution is preferred

What schedules should be included in a Sales Rep Contract?

1. Schedule 1 - Territory Map: Detailed map and description of the assigned sales territory

2. Schedule 2 - Product List: Comprehensive list of products covered under the agreement

3. Schedule 3 - Commission Structure: Detailed commission rates, calculation methods, and payment terms

4. Schedule 4 - Sales Targets: Specific performance metrics and targets

5. Schedule 5 - Reporting Templates: Standard forms and templates for required reports

6. Schedule 6 - Company Policies: Relevant company policies and procedures

7. Appendix A - Code of Conduct: Standard behavior and ethics guidelines for representatives

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Sale Agreement

Cost

Free to use
Relevant legal definitions






















Clauses






























Relevant Industries

Consumer Goods

Retail

Manufacturing

Technology

Pharmaceuticals

Industrial Equipment

Telecommunications

Automotive

Construction Materials

Electronics

Fashion and Apparel

Food and Beverage

Medical Devices

Software and IT

Relevant Teams

Sales

Legal

Human Resources

Compliance

Finance

Operations

Business Development

Commercial

Administration

Risk Management

Relevant Roles

Sales Representative

Sales Manager

Regional Sales Director

Business Development Manager

Account Executive

Territory Manager

Sales Operations Manager

Channel Sales Manager

Commercial Director

Chief Sales Officer

VP of Sales

Legal Counsel

HR Manager

Compliance Officer

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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