The Commission Agreement Between Seller And Agent is a crucial document for businesses seeking to establish commercial representation in Saudi Arabia. This agreement type is particularly important given Saudi Arabia's distinct legal framework, which combines modern commercial law with Sharia principles. It's commonly used when a company (Seller) wishes to engage a local agent to promote and sell their products or services in Saudi territory, offering commission-based compensation. The document must comply with the Saudi Commercial Agencies Law and related regulations, which provide specific requirements for agent registration and business conduct. The agreement typically includes detailed provisions on commission structures, territorial rights, performance metrics, and compliance requirements, making it essential for establishing clear, enforceable commercial relationships in the Saudi market.
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1. Parties: Identification of the Seller and Agent, including full legal names, addresses, and commercial registration details as required by Saudi law
2. Background: Context of the agreement, brief description of the Seller's business and intention to appoint the Agent
3. Definitions: Key terms used throughout the agreement, including Products, Territory, Customers, Commission, etc.
4. Appointment and Scope: Terms of Agent's appointment, exclusivity/non-exclusivity, and territorial scope
5. Term and Termination: Duration of the agreement, renewal terms, and grounds for termination
6. Commission Structure: Detailed explanation of commission rates, calculation methods, and payment terms
7. Agent's Obligations: Comprehensive list of Agent's duties, reporting requirements, and performance standards
8. Seller's Obligations: Seller's commitments regarding product information, support, and cooperation
9. Payment Terms: Commission payment schedule, currency, method of payment, and handling of expenses
10. Compliance: Compliance with Saudi laws, including Commercial Agencies Law and Sharia principles
11. Confidentiality: Protection of confidential information and trade secrets
12. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction for disputes
13. General Provisions: Standard clauses including force majeure, notices, and amendment procedures
1. Non-Competition: Restrictions on Agent's ability to represent competing products, used when exclusivity is important
2. Intellectual Property: Protection of trademarks and other IP rights, important when Agent will be using Seller's brands
3. Performance Targets: Specific sales targets or KPIs, included when performance measurement is crucial
4. Training and Support: Details of training provided by Seller, included for complex products or services
5. Insurance: Insurance requirements for Agent, included when business involves significant risks
6. Data Protection: Handling of customer data and compliance with privacy laws, important for digital businesses
7. Sub-Agents: Terms for appointment of sub-agents, if allowed
8. Post-Termination Obligations: Specific duties after agreement ends, important for complex relationships
1. Schedule 1 - Products: Detailed list of products or services covered by the agreement
2. Schedule 2 - Territory: Detailed description of geographical territory and any excluded areas
3. Schedule 3 - Commission Rates: Detailed commission structure, including any variations by product or customer type
4. Schedule 4 - Reporting Requirements: Templates and specifications for regular reports required from Agent
5. Schedule 5 - Performance Criteria: Detailed KPIs and measurement methods
6. Appendix A - Required Documentation: List of documents required for compliance with Saudi Commercial Agencies Law
7. Appendix B - Approved Marketing Materials: Guidelines and approved materials for market representation
Relevant legal definitions
Clauses
Relevant Industries
Retail
Manufacturing
Technology
Consumer Goods
Industrial Equipment
Automotive
Healthcare
Construction Materials
Fashion and Luxury Goods
Electronics
Food and Beverage
Telecommunications
Chemical Products
Professional Services
Relevant Teams
Legal
Sales
Commercial Operations
Business Development
Compliance
Finance
Contract Administration
International Trade
Channel Management
Relevant Roles
Sales Director
Commercial Director
Business Development Manager
Legal Counsel
Compliance Officer
Chief Commercial Officer
Regional Sales Manager
Contract Manager
Chief Executive Officer
Managing Director
Sales Operations Manager
Channel Manager
Agent Relations Manager
Commercial Agency Manager
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