The Exclusive Commission Agreement is a critical commercial document used when a business (principal) wishes to appoint an exclusive representative (agent) to promote and sell their products or services in Nigeria. This agreement type is particularly important in the Nigerian market where local representation is often essential for business success. The document addresses key aspects including commission structures, exclusivity terms, territorial rights, performance metrics, and compliance with Nigerian commercial law. It's specifically designed to protect both parties' interests while ensuring compliance with Nigerian regulatory requirements, including the Commercial Agency Agreements Act and competition laws. The agreement is commonly used for establishing long-term commercial relationships and includes provisions for performance monitoring, payment terms, and dispute resolution under Nigerian jurisdiction.
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1. Parties: Identification and details of the Principal and the Agent
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Scope: Terms of exclusive appointment and territorial scope
5. Duration and Term: Period of the agreement, including commencement date and initial term
6. Exclusivity Provisions: Detailed terms of exclusivity and any territorial restrictions
7. Commission Structure: Calculation method, rates, and payment terms for commission
8. Rights and Obligations: Detailed responsibilities of both parties
9. Performance Targets: Minimum performance requirements and evaluation criteria
10. Reporting and Payment: Requirements for sales reporting and commission payment procedures
11. Intellectual Property: Usage rights and restrictions regarding trademarks and other IP
12. Confidentiality: Protection of confidential information and trade secrets
13. Termination: Grounds for termination and process
14. Post-Termination: Obligations and restrictions after agreement ends
15. General Provisions: Standard boilerplate clauses including governing law, notices, etc.
1. Training and Support: Details of training and support provided by principal to agent, included when significant training is part of the arrangement
2. Marketing and Promotion: Obligations regarding marketing activities and cost sharing, included when marketing is a significant component
3. Sub-Agents: Terms for appointment and management of sub-agents, if permitted
4. Insurance: Insurance requirements and obligations, included for high-risk activities
5. Data Protection: Specific data protection and privacy obligations, included when handling sensitive data
6. Force Majeure: Provisions for unforeseen circumstances, included in longer-term agreements
7. Anti-Corruption: Compliance with anti-corruption laws, included when dealing with government contracts or high-risk territories
8. Change Control: Process for making changes to the agreement, included in complex arrangements
1. Commission Rates: Detailed breakdown of commission rates for different products/services
2. Territory Definition: Detailed description of geographical territory covered
3. Products and Services: List of products/services covered by the agreement
4. Performance Metrics: Detailed KPIs and measurement criteria
5. Reporting Templates: Standard forms for periodic reporting
6. Trademark Usage Guidelines: Specific rules for use of principal's trademarks
7. Contact Details: Key contact persons and communication protocols
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