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PLAYBOOK TEMPLATES
Sales Agency Agreement
A Sales Agency Agreement defines the relationship between a principal and agent for the promotion and sale of goods or services. This playbook outlines commission structures, exclusivity provisions, and termination rights critical to effective representation.
Term and Termination
Negotiation strategy
Ensure the initial term aligns with strategic goals and provides flexibility for future changes. Negotiate favorable renewal terms and clear termination rights to avoid being locked into an unfavorable contract.
Seek a longer initial term to ensure stability and predictability. Negotiate termination clauses that provide adequate notice and opportunities to remedy breaches to protect ongoing business interests.
Essential elements
1
Initial Term
Defines the contract's starting duration.
2
Renewal Mechanism
Outlines conditions for contract renewal.
3
Termination Rights
Specifies conditions for ending the contract.
Action framework
ACCEPT
Propose edits if the initial term or renewal terms do not align with strategic objectives or if termination rights are too restrictive.
EDIT
Reject clauses that impose unreasonable termination penalties or lack sufficient notice periods.
ADD
Add language to address change of control or to clarify ambiguous termination conditions.
PRO TIP
Always ensure termination clauses include clear notice requirements and cure periods to prevent disputes.
Real-world examples
FAVORABLE
Balanced Termination Clause
"Either party may terminate this Agreement for convenience by providing the other party with at least sixty (60) days' prior written notice."
NEUTRAL
Standard Renewal Clause
"Upon the expiration of the initial term, this Agreement shall automatically renew for successive one (1) year terms unless either party provides written notice of its intention not to renew at least ninety (90) days prior to the expiration of the then-current term."
UNFAVORABLE
Restrictive Termination Clause
"Termination is only allowed upon mutual agreement, with no less than one hundred eighty (180) days' notice."
Alternative scenarios & positions
High-Risk Projects
In high-risk projects, ensure termination clauses allow for quick exit strategies to mitigate potential losses.
Long-Term Partnerships
For long-term partnerships, focus on renewal terms that provide stability while allowing for periodic renegotiation.
Mergers and Acquisitions
In M&A scenarios, include change of control provisions to protect against unexpected shifts in business relationships.
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WEEK 1
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WEEK 2
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WEEK 3
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Your team builds initial playbooks, reviews existing clause libraries, and trains the DocJuris agent to align with your internal standards and negotiation positions.
WEEK 4
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