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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 9032
Experience:  I have been practising for 30 years.
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I need help in creating an agreement reps. I have a document

Customer Question

Hi there, I need help in creating an agreement for sales reps. I have a document that I have created and need feedback to ensure it meets my requirements and is understood.
Submitted: 10 months ago.
Category: Law
Expert:  chatham-chamber replied 10 months ago.

Hi,

Can you scan the document across?

Customer: replied 10 months ago.
Hi there, I have attached the contract. My two key questions here as the company owner are:Based on the contents of this document can I reduce or increase monthly/fortnightly/weekly commisions at any point and thus make adjustments in terms of payment plans with reps.The second question is, with point 5.1 does this allow me to cancel any aspect of the contract or the entire agreement at any time.Thank you
Expert:  chatham-chamber replied 10 months ago.

Hi,

I will take a look and come back to you. I am heading out for the rest of the evening and will revert back to you tomorrow.

K8nd regards

Customer: replied 10 months ago.
Hi there,How did it go with the checking and advice on the contract? If required you can give me a quick call on ***********
Thank you
Expert:  chatham-chamber replied 10 months ago.

Hi,

Been busy with family this weekend. I will give you a call in the morn8ng.

Kind regards

Customer: replied 10 months ago.
Hi there, I am still awaiting your call ?
Customer: replied 10 months ago.
Hi there, I have not yet received any kind of answer. Please reply back with the related answer as soon as possible as I need this sorted.
Expert:  F E Smith replied 10 months ago.

I see that you have been waiting some time for this. Do you want to wait for the original expert or would you like to me look at this for you?

Either way, do you have any specific concerns about the agreement?

Where did you get it from?

Initial comments are that I make would be to split clause 2 into lots of subclauses and similarly 4.1 needs dividing.

Customer: replied 10 months ago.
Hi there, I would like you to advice me on this as the other expert is not responding.I have attached the contract. My two key questions here as the company owner are:Based on the contents of this document can I reduce or increase monthly/fortnightly/weekly commissions at any point and thus make adjustments in terms of payment plans with reps.The second question is, with point 5.1 does this allow me to cancel any aspect of the contract or the entire agreement at any time.Thank you
Expert:  F E Smith replied 10 months ago.

I will be honest with you. It is woefully inadequate. I apologise if you drafted it yourself.

There is no good and valuable consideration because no money is changing hands for the agreement. The document needs drafting as a deed.

In clause 2 is says that the sales rep will promote the Products and Services to Customers but this no mention anywhere of what those products or services are. In clause 1 it says “all of”, but doesn’t expand on that.

With regard to the many elements of clause 2, I just can’t understand it at all.

4.1 is likely to be unenforceable because in effect it means that you could not pay anything at all. You will need to specify the percentage of reduction and specify that you can’t vary it unreasonably.

5.1 this doesn’t make sense because it should refer to the laws of England & Wales and the jurisdiction of the courts of England & Wales. I don’t know what you mean about clause 5.1 allowing you to cancel. There is no right to cancel because it’s a one-year agreement under the terms of clause 3.

I’m afraid that I would like to rely on this document and it’s going to need several hours of work to knock it into some semblance of order. You would probably be better finding a more suitable agreement.

I’m sorry to be so blunt but it’s not an agreement that I would have any confidence in relying on.

Can I clarify anything for you?

Please don’t forget to rate the service positive. It’s an important part of the process by which experts get paid.

Best wishes.

FES.

F E Smith, Advocate
Category: Law
Satisfied Customers: 9032
Experience: I have been practising for 30 years.
F E Smith and 2 other Law Specialists are ready to help you
Customer: replied 10 months ago.
Hi there,Please quote me on the creation of a more adequate document and you can use this as a template for guidance.In terms of more information about the products and services I can add this myself. I would like a new agreement to be drafted that allows for an increase or decrease in commissions. This also includes a complete end to commissions.Please reply as to whether this is possible.thank you
Customer: replied 10 months ago.
Hi thereCustomerWould it be possible to get a contract made up by you? I still await your response.Thank you
Expert:  F E Smith replied 10 months ago.

I apologise for the delay. For some reason I did not get notification that you were waiting until today.

There is probably a full days work in doing this from scratch if not more. There is certainly half a day in going through someone else’s document and amending it.

What I suggest you do this to find another agreement from somewhere else on the Internet doing the same thing and then let me have that agreement.

I would also need the full details of your business services et cetera before I am able to give you a price.

Customer: replied 10 months ago.
Hi thereCustomerI have edited the initial contract contents and also the layout. This agreement itself was gained from the internet and edited. I have also added details on the product and service offering. The requirements that I need were laid on in previous conversations. I would appreciate a quote on the editing of this document to the requirements and also to an acceptable standard.Kind Regards,Zeeshan
Customer: replied 10 months ago.
Please find attached the document
Expert:  F E Smith replied 10 months ago.

I suggest that you use this is the basis for your agreement:

http://www.fastdue.com/Agreement.aspx?t=SALES%20REPRESENTATIVE%20AGREEMENT

It relates to the United States but it’s easy to change to United Kingdom.

Even so, there is a good half day’s work in this if you want it doing from end to end. I will submit a premium service is proposal for you.

Customer: replied 10 months ago.
HiCustomerI am hoping to negotiate a fee of £50 per hour for 4 hours meaning a total of £200. I shall also be sure to use your services again. In addition, what is your turnaround time once payment is made?Kind Regards,Zeeshan
Expert:  F E Smith replied 10 months ago.

You would normally get it in 24/48hrs

Customer: replied 10 months ago.
Hi CustomerAre you willing to provide the service for the £200 ?Zeeshan
Expert:  F E Smith replied 10 months ago.

Yes, I can do that. You would need to place the deposit with the site.

Customer: replied 10 months ago.
HiCustomerJust to confirm. Do you have the capability to ensure that the contract gives the company the ability to stop paying recurring commissions at any point under the legal terms. Please also send the new offer of £200.Zeeshan
Expert:  F E Smith replied 10 months ago.

This is not something that I would be able to deal with for you I am afraid. You would need, for practical purposes, to find a solicitor that was near to one of the basis that you visit when you are in the UK.

Fees are here

https://www.gov.uk/make-court-claim-for-money/court-fees

you will court fee is between 4.5% and 5% of the claim depending on when you issue the claim online.

Solicitors will charge £200 per hour or thereabouts for this. You will recover those costs if your claim is successful. If your claim is not successful and it’s defended successfully, you would have to pay your own costs plus those of the defendant. I don’t see how the defendant can defend it but you never know what’s going to happen in court.

Customer: replied 10 months ago.
I do not fully understand, so you are describing a situation if a sales rep was to go to court and claim?
Customer: replied 10 months ago.
The agreement would be between the rep and the company
Customer: replied 10 months ago.
I would also like to add, is a simple solution simply to say on the contract that it is a 'rolling monthly agreement and notice of cancellation can be provided by either party at any time'
Expert:  F E Smith replied 10 months ago.

I apologise, that was meant for another question. It does happen from time to time.

You haven’t mentioned recurring commissions before. However I made the offer to draft the agreement for you three days ago early on 11 July, Monday. Since then, I have had to take on some other work which now means I don’t have time to do the agreement for you.

Customer: replied 10 months ago.
Ok when you are available I shall use your valued services. However, please confirm that if the contract does mention that either party can cancel at any time is this sufficient? The purpose is for the company to eventually cut the everlasting recurring commissions generated from a client using the services monthly. I need to understand this before proceeding.
Customer: replied 10 months ago.
Hi thereCustomerI am still awaiting a response to my previous message?Zeeshan
Expert:  F E Smith replied 10 months ago.

Thank you. Any notice agreements need to be reciprocal. Hence, if you are allowed to cancel at any time or on 1 months notice, then the sales rep needs to be able to cancel on the same terms.

There is no problem in not paying recurring commissions provided it is clearly stated in the contract the basis of the remuneration.

Depending on the service is, and how the commission is paid, and whether there is going to be any repayment of commissions in respect of any clients who cancel the service, it needs to specifically say that any such cancellation commissions will be deducted. If it doesn’t, then you cannot automatically deduct in respect of cancellations.

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