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Non Exclusive Sales Agreement Template for Canada

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Key Requirements PROMPT example:

Non Exclusive Sales Agreement

"I need a Non-Exclusive Sales Agreement for my software company based in Ontario, allowing multiple sales representatives to sell our cloud-based services across Western Canada, with quarterly performance targets and specific provisions for customer data protection."

Document background
The Non-Exclusive Sales Agreement is a crucial commercial contract used when a company wishes to expand its sales channels while maintaining flexibility in its distribution strategy. This document is particularly relevant in the Canadian market, where businesses often need to establish multiple sales channels across various provinces and territories. The agreement defines the relationship between a supplier/manufacturer and a sales representative, outlining their respective rights and obligations while ensuring compliance with Canadian federal and provincial laws. It includes essential provisions for commission structures, sales territories, performance metrics, and operational procedures, while maintaining the supplier's right to appoint additional representatives. This type of agreement is commonly used when companies want to test new markets, maintain competitive distribution channels, or avoid the constraints of exclusive arrangements.
Suggested Sections

1. Parties: Identification of the parties entering into the agreement, including full legal names and addresses

2. Background: Context of the agreement, including brief description of the parties' businesses and purpose of the arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Scope: Terms of the non-exclusive appointment and scope of sales authority

5. Territory: Definition of the geographical area where the sales representative is authorized to sell

6. Products: Description of products/services covered by the agreement

7. Pricing and Commission: Terms related to pricing, commission rates, and payment conditions

8. Orders and Delivery: Process for placing and fulfilling orders

9. Term and Termination: Duration of the agreement and conditions for termination

10. Obligations of the Parties: Specific duties and responsibilities of both parties

11. Intellectual Property: Protection and usage rights of trademarks, logos, and other IP

12. Confidentiality: Provisions for handling confidential information

13. Warranties and Indemnities: Warranties provided by each party and indemnification obligations

14. General Provisions: Standard legal provisions including notices, amendments, governing law, etc.

Optional Sections

1. Performance Targets: Minimum sales targets or performance requirements, used when specific sales goals need to be met

2. Training and Support: Details of training and support provided by the supplier, included when significant product knowledge is required

3. Marketing and Promotion: Requirements for marketing activities and cost sharing, relevant when joint marketing efforts are planned

4. Non-Compete: Restrictions on selling competing products, used when exclusivity in product category is desired

5. Insurance: Insurance requirements for the sales representative, included when dealing with high-value products or specific risks

6. Data Protection: Specific provisions for handling customer data, necessary when personal data processing is involved

7. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term agreements

8. Audit Rights: Right to audit sales records and performance, included when detailed performance tracking is needed

Suggested Schedules

1. Schedule A - Products and Services: Detailed list of products/services covered by the agreement, including specifications

2. Schedule B - Commission Structure: Detailed breakdown of commission rates, including any variations by product or volume

3. Schedule C - Territory Map: Detailed description or map of the authorized sales territory

4. Schedule D - Operating Procedures: Detailed procedures for order processing, reporting, and other operational matters

5. Schedule E - Performance Metrics: Specific performance targets and measurement criteria

6. Appendix 1 - Approved Marketing Materials: List of approved marketing materials and usage guidelines

7. Appendix 2 - Reporting Templates: Standard forms and templates for sales reporting

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

































Clauses


































Relevant Industries

Manufacturing

Consumer Goods

Technology

Professional Services

Industrial Products

Healthcare

Automotive

Electronics

Telecommunications

Software

Retail

Wholesale Distribution

Medical Devices

Construction Materials

Chemical Products

Relevant Teams

Sales

Legal

Commercial

Business Development

Operations

Contract Administration

Finance

Procurement

Compliance

Executive Leadership

Relevant Roles

Sales Director

Commercial Manager

Business Development Manager

Sales Operations Manager

Legal Counsel

Contract Manager

Chief Commercial Officer

Sales Representative

Account Manager

Regional Sales Manager

General Manager

Procurement Manager

Chief Executive Officer

Sales Administrator

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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