survives the termination of the agreement just in case you get sued after your relationship with the principal is over.
10. Don’ t be afraid to negotiate or to walk away from a bad contract— You negotiate every day of your professional career. You should never hesitate to negotiate for yourself with respect to the terms of your contract. Remember, the principal already selected you to serve as its rep. It wants you because of your knowledge, experience and proven ability for getting results in your territory. However, if you cannot make a deal that is satisfactory, don’ t force the issue and agree to a bad contract in the hope that everything will work out in the end. Many times, it doesn’ t. You are better off walking away from a bad deal.
One more tip— after you sign an acceptable rep agreement, don’ t put it away in a drawer never to see the light of day until a problem arises or until the end of your relationship with your principal. I recommend that you review all of your rep agreements on an annual basis. Also, it is helpful to prepare a grid that summarizes the key provisions of all of your contracts such as term, termination, post-termination, house accounts, and territory. That way, you can plan ahead and avoid surprises
No contract is perfect. There always will be issues and problems in any dynamic business relationship. However, if you take the time to review, understand and negotiate a contract, and to assure that it clearly memorializes the term agreed upon with the principal, you likely will have the legal foundation for an excellent and mutually rewarding business relationship. After all, principals and reps should view themselves as a team, working together to promote the sale of the principal’ s products. A good rep agreement is part of achieving that shared goal.
MANA welcomes your comments on this article. Write to us at mana @ manaonline. org.
Dan Beederman Daniel E. Beederman is MANA’ s legal counsel. He is a partner in Schoenberg Finkel Newman & Rosenberg, LLC, a full-service business law firm in Chicago. Beederman and his firm also serve as legal counsel to the Electronic Representatives Association( ERA), Association of Independent Manufacturers’/ Representatives, Inc.( AIM / R), International Housewares Representatives Association( IHRA), and other associations whose members are independent sales representatives and the companies that use them. For over 35 years, Beederman has counseled independent sales representatives on matters unique to their profession, including commission-collection disputes and litigation, as well as reviewing and revising sales representative agreements, and succession planning. He is also a well-known speaker and author on legal and business issues of interest to independent sales representatives. He can be reached at Daniel. Beederman @ sfnr. com.
Legally Speaking is a regular department in Agency Sales magazine. This column features articles from a variety of legal professionals and is intended to showcase their individual opinions only. The