Commercial agency – listing of duties (model clause)
Model clause listing the contractual duties imposed by a principal on their commercial agents. This model clause lists such actions well-structured. Excellent checklist for alignment with the principal's regular sales and after-sales processes
The model clause lists the contractual duties of a commercial sales agency pursuant to an agency agreement it enters into with their principal. In addition to a general obligation to make best efforts in generating sales; a section is included that elaborates on the particular actions as the principal expects from the commercial agent.
In aligning the laundry list of such actions, the principal would align it with its own internal processes for marketing, business development, sales, business operations (service delivery model), after-sales support and training, complaints-handling, fee collection (if applicable) and related financial viability (or KYC) checks. Furthermore, the clause requires (emphasises) that the agent may only contract with customers based on the principal’s general terms and conditions of sale.
More background information and guidance on agency agreements can be found here on the Weagree website.
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