In the Sales Agency contract, identify and explain 3 different contractual terms that relate to one of the legal principles we have discussed in class.

Link in class:

https://drive.google.com/file/d/11nMhkvfsdRSN1Ju6r295OLtpykj9UzLv/view?usp=sharing

For each term, explain:

The legal principle

How the term defines the legal relationship between the parties

How the contractual term impacts the relationship between the parties going forward

For example:

Article 3.1: Sole Compensation

1- Legal principle: In a valid contract, the parties can agree to any term they wish, as long as it is legal and follows the rules of contract formation. In this case, the parties are agreeing that the agent shall only be paid in the form of a commission, and how the amount of the commission is calculated.

2- Legal relationship between the parties:

The principal is only liable to pay the agent a commission on what he/she sells for the duration of the contract in the specified territory. The commission is calculated on net sales.

3- Impact going forward:

The agent needs to be aware that they will only be paid for products sold in the Territory, and that the amount will be calculated on net sales. This implies that the agent needs to be aware of the scope of the territory, and the difference between gross and net sales.