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.
Why This Matters: Overly broad warranties can create extensive liability, while too narrow ones offer little protection. Balanced warranties foster trust and legal certainty.
Negotiation strategy
If you're the Company:
Negotiate for comprehensive warranties that cover key aspects of the goods or services. Ensure that any disclaimers do not undermine the protection offered by the warranties.
If you're the Service Provider:
Limit warranties to essential elements and include disclaimers for implied warranties. Ensure that liability is capped to avoid excessive exposure.
Essential elements
1
Quality Assurance
Ensures goods meet standards.
2
Compliance Warranty
Adherence to laws and regulations.
3
Authority Representation
Confirms power to contract.
Action framework
ACCEPT
Propose edits when warranties are too broad or vague, ensuring they align with the negotiated terms.
EDIT
Reject clauses that impose unreasonable liability or lack clear remedies.
ADD
Add clauses when warranties are missing or insufficient to protect interests.
PRO TIP
Always align warranties with the specific risks and expectations of the transaction to avoid future disputes.
Example clauses
FAVORABLE
Preferred Quality and Compliance Warranty
"The Seller warrants that all goods supplied under this Agreement shall be of merchantable quality and shall comply with all applicable laws, regulations, and standards. The Seller further warrants that the goods shall be free from defects in material and workmanship for a period of twelve (12) months from the date of delivery."
NEUTRAL
Standard Warranty Clause
"The Seller warrants that the goods will conform to the specifications provided."
UNFAVORABLE
Overly Broad Warranty
"The Seller warrants all aspects of the goods without limitation."
Fallbacks
High-Risk Projects
In high-risk projects, warranties should be more comprehensive to cover potential failures and ensure adequate remedies.
International Transactions
Consider jurisdiction-specific requirements and adjust warranties to comply with international laws and standards.
Technology Agreements
Include specific warranties related to software performance and data security to address unique risks in technology transactions.
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WEEK 1
CLM Readiness and Design
Our CX team works with you to understand your contracting challenges, prioritize key workflows, and identify the biggest impact areas. We build a tailored implementation plan that fits your needs.
WEEK 2
Install Module
We connect DocJuris to your contract repositories, set up admin and user accounts, and ensure your environment is ready for success.
WEEK 3
Deliver & Test
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
Launch
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DocJuris is not a law firm or a substitute for an attorney or law firm. We cannot provide any kind of advice, explanation, opinion, or recommendation about possible legal rights, remedies, defenses, options,selection of forms or strategies.