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Sales Broker Agreement Template for Singapore

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Key Requirements PROMPT example:

Sales Broker Agreement

"I need a Sales Broker Agreement for my Singapore-based software company to engage independent sales representatives across Southeast Asia, with a 15% commission structure and strict data protection clauses to be effective from March 2025."

Document background
The Sales Broker Agreement is essential for businesses operating in Singapore that utilize third-party sales representatives to market and sell their products or services. This document is particularly relevant when establishing a formal broker relationship that needs to comply with Singapore's legal framework, including the Civil Law Act and industry-specific regulations. The agreement typically covers commission structures, territorial rights, performance expectations, and compliance requirements, while clearly distinguishing the broker's status as an independent contractor rather than an employee.
Suggested Sections

1. Parties: Identification of the principal and broker, including full legal names and addresses

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of broker appointment and detailed scope of services

5. Commission Structure: Detailed breakdown of commission calculations and payment terms

6. Duties and Obligations: Specific responsibilities of both broker and principal

7. Term and Termination: Duration of agreement and termination provisions

8. Confidentiality: Protection of confidential information

9. Governing Law: Specification of Singapore law as governing law

Optional Sections

1. Non-Compete: Restrictions on competitive activities - used when protecting market position is crucial

2. Insurance Requirements: Required insurance coverage - used when broker activities involve significant risk

3. Training and Support: Principal's obligations for broker training - used when specialized product knowledge is required

4. Marketing Guidelines: Rules for marketing and brand usage - used when broker will represent principal's brand

5. Data Protection: PDPA compliance requirements - used when personal data processing is involved

Suggested Schedules

1. Commission Schedule: Detailed commission rates and calculation methods

2. Territory Schedule: Defined geographical areas of operation

3. Product Schedule: List of products/services covered by the agreement

4. KPI Schedule: Performance metrics and targets

5. Compliance Manual: Regulatory compliance procedures and requirements

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



































Industries

Civil Law Act: Primary legislation governing civil law matters and contracts in Singapore, providing the fundamental legal framework for the agreement

Contract Law: Based on English common law principles, governs the formation and enforcement of contracts in Singapore

Securities and Futures Act: Relevant if the broker deals with financial instruments or securities trading

Agency Law: Legal principles governing the relationship between principal and agent, crucial for defining broker's authority and obligations

Estate Agents Act: Applicable if the broker agreement involves real estate transactions

Insurance Act: Relevant if the broker agreement involves insurance products

Consumer Protection (Fair Trading) Act: Ensures fair trading practices and consumer protection in commercial transactions

Competition Act: Regulates competitive practices and prevents anti-competitive behavior in business relationships

Employment Act: May be relevant if the broker relationship could be construed as employment rather than independent contracting

Central Provident Fund Act: Relevant for social security considerations if the relationship is deemed employment

Work Injury Compensation Act: Applicable if the broker relationship is classified as employment

Personal Data Protection Act 2012: Governs the collection, use, and disclosure of personal data in Singapore

Corruption, Drug Trafficking and Other Serious Crimes Act: Anti-money laundering legislation relevant for financial transactions and due diligence

MAS Guidelines: Regulatory guidelines from Monetary Authority of Singapore for financial services and related activities

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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