When your company has found a prospective foreign representative, the next step is to negotiate a foreign sales agreement. There is certain information you need to provide, and many legal issues to consider. In drafting the agreement, you must pay special attention to safeguarding your company’s interests in case the representative proves unsatisfactory.
Considerations to be covered:
- Market Penetration Considerations – Evaluating Candidates for Foreign Representation, Representation and Distribution Agreements & Developing Overseas Representatives
- What language should the contract be drafted in
- Obtaining legal counsel
- Establishing an escape clause or a certain term for the agreement
- Designating Sales territory
- Accountability measures for your representative/ “just cause” for termination
- Pros/cons of exclusive vs. non-exclusive representation, selecting, screening
- Motivating international reps/best practices when working with international reps
- Damon Claus. Castus Consulting. “Best practices when working with international reps.”
- Susanne Cook. Dentons Cohen & Grigsby. “ International Business Contracts”
Sponsored by the Small Business Development Center University of Pittsburgh.