Software Sales Representation Agreement

Summary

This software sales representation agreement is between a software owner and a sales representative and grants the representative a nonexclusive sales territory in which to promote and solicit orders for the owner's software product. This template includes practical guidance, drafting notes, and alternate and optional clauses. This template contemplates a domestic sales representative will represent the supplier's software product in a defined, nonexclusive territory. A sales representative is generally hired by the principal to solicit orders for the principal's products. The supplier generally retains the right to accept or reject the orders taken by the representative. As the representative is an independent contractor, it will usually pay its own expenses incurred in performing the agreement. Where the area to be covered is large enough to warrant additional salespersons for proper coverage, the representative may need to have the right to appoint qualified sub-agents, which sub-agents would be employees or associates of the representative and would therefore receive no payment or commission from the supplier. The principal will generally provide the representative with samples, selling literature, and/or catalogues, as dictated by the nature of the product, as necessary to effectively promote and sell the products in the relevant territory. For related information, see Sales Agency Agreements, Sales Agency Resource Kit, Sales Agency Agreement Drafting Checklist (Agent), and Sales Agency Agreement Drafting Checklist (Supplier). For agreements with terms that favor the sales representative and supplier, see Sales Representative Agreement (Pro-Supplier) and Sales Representative Agreement (Commission Payment) (Sales Representative).