Sales Employment Agreement

Leezer Kaur
Apr 20, 2023
3 min read

“Written by Leezer Kaur, student.

Agreement:

This term provided under Section 2(e) of the Indian Contract Act, 1872, is considered a promise for some valid consideration.

Employment Agreement:

It is a kind of agreement via which the employer employs the employees. It may also give details like tenure, salary, termination of services, etc. For this to be enforceable in a court of law, it must be legal, valid, and by the laws of the land and statutes like the Indian Contract Act of 1872.

Sales Employment Agreement:

It is an agreement that requires it to be signed by the employee who is supposed to act as a sales representative for the employer to sell his products. The two parties to this type of agreement are the employer who provides the employment and the employee who is supposed to act as the sales representative. Sometimes, this agreement takes place between the employer and the independent contractor. It also becomes binding if it is legal and valid.

Sales Representative:

A Sales Representative is a person who sells the products and services provided by the employer to the customers. It is required for the representative to know about the product or service he is providing. It is also important to have tactics and good communication skills.

There is also the requirement of a customer-understanding approach to prove successful in selling the product or service.

Importance:

The main objective of such an agreement is to describe the rights and obligations of both parties and the terms and conditions that are supposed to be fulfilled during employment by the employee and the employer.
It is a legally enforceable document that provides for damages in case of breach of the terms and conditions of employment. The terms and conditions may be provided for the job, working hours, compensation, etc.
It helps in the easy resolution of disputes between the employee and the employer as both parties are supposed to act according to the provisions of the agreement entered into by them.

Particulars mentioned in the sales representative agreement are as follows

It should specify the designation of the job to be accomplished by the employee.
It must also specify the tasks to be done by the employee during his employment.
It must specify the duration for which it would be applicable.
It should also specify the terms and conditions of the employment.
It may also specify the rights and obligations of the parties.
It may also specify the conditions under which the employment will terminate.
It may also provide for nondisclosure of confidential information, if any, which was necessary for the sales representative to know regarding the product to work efficiently.
The company may also provide terms for the protection of the business and goodwill of the company.
It may also specify the wages and remuneration which are to be received by the sale representative during his employment.
It has to specify the provisions related to the compensation, bonus, and other benefits to which the employee would be entitled.
It may also specify the duration for which the notice in advance is supposed to be provided for termination.
It may also specify the course of action in case of a breach of the agreement.

Legal Provisions related to it

There is no formal description of this concept in the Indian Contract Act of 1872. Also, it has to be signed by both parties and is to be legally valid and by the law of the land. But, it is a valid and well-accepted concept.

Conclusion

A Sales employment agreement is a type of agreement that an employer gets signed by the employees who are required to be appointed as sales representatives to advertise and sell their products and services. It provides for the terms and conditions of employment. It is legally binding and enforceable in a court of law if it is by the requirements of a valid agreement and also by the laws of the land.

References

'All you need to know about Sales Employment Agreement', iPleaders, available at: https://blog.ipleaders.in/need-know-sales-employment-agreement/#:~:text=What%20is%20a%20Sales%20Employment,sales%20representative%20for%20the%20employer.