The Representation Agreement serves as a crucial legal instrument for businesses operating in Nigeria who wish to appoint individuals or entities to act on their behalf. This document is essential when a company (Principal) needs to authorize another party (Representative) to represent their interests, sell products, provide services, or conduct business activities in specified territories within Nigeria. The agreement must comply with Nigerian contract law, agency regulations, and relevant commercial legislation. A well-drafted Representation Agreement should clearly define the scope of authority, territorial rights, compensation structure, and performance expectations while incorporating necessary protections for both parties. It's particularly important in the Nigerian business context where clear documentation of commercial relationships is essential for legal certainty and regulatory compliance.
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1. Parties: Identifies and provides full details of the Principal and the Representative, including registration numbers and addresses
2. Background: Contextual information explaining the purpose of the representation arrangement and the parties' intentions
3. Definitions: Defines key terms used throughout the agreement to ensure clarity and prevent misinterpretation
4. Appointment and Scope: Details of the Representative's appointment and the exact scope of authority granted
5. Term: Duration of the agreement, including start date and any renewal provisions
6. Representative's Rights and Obligations: Comprehensive list of the Representative's duties, responsibilities, and authorized activities
7. Principal's Rights and Obligations: The Principal's commitments, support obligations, and retained rights
8. Compensation and Payment Terms: Details of fees, commissions, expenses, and payment procedures
9. Confidentiality: Obligations regarding confidential information and trade secrets
10. Non-Competition and Non-Solicitation: Restrictions on competitive activities and client solicitation
11. Termination: Grounds for termination, notice requirements, and consequences of termination
12. Post-Termination Obligations: Continuing obligations and wrap-up procedures after agreement ends
13. General Provisions: Standard clauses including notices, amendments, governing law, and dispute resolution
1. Intellectual Property Rights: Required when the representation involves use of trademarks, patents, or other IP
2. Performance Targets: Include when the representation is subject to specific performance metrics or sales targets
3. Training and Support: Needed when the Principal must provide specific training or ongoing support
4. Insurance Requirements: Include when specific insurance coverage is required for the representation
5. Marketing and Promotion: Required when the Representative has specific marketing responsibilities or restrictions
6. Compliance with Industry Regulations: Include for regulated industries or specific sector requirements
7. Sub-Representatives: Include if the Representative is permitted to appoint sub-representatives
8. Data Protection: Required when the representation involves handling personal or sensitive data
1. Territory Schedule: Defines the geographical area or market where the Representative is authorized to act
2. Products/Services Schedule: Detailed list of products or services covered by the representation
3. Commission Structure: Detailed breakdown of commission rates, calculations, and examples
4. Performance Metrics: Specific KPIs, targets, and measurement criteria
5. Approved Sub-Representatives: List of pre-approved sub-representatives if applicable
6. Required Reports: Templates and specifications for required periodic reports
7. Operating Procedures: Detailed procedures for day-to-day operations and interactions
8. Compliance Requirements: Specific regulatory or industry compliance requirements and procedures
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