hello, I am a fashion designer, my name isXXXXX have an independent sales contract for a possible independent sales rep., however, this person would like me to sign a separate agreement where she would receive compensation of $1,500 for gas and cell phone bills besides her sales commission. I am new in the business and I would like to know what a most reasonable response would be. Thank you kindly
Thank you for your question. Be sure to go ahead and bookmark www.nateanswers.com for future questions.Usually travel and other expenses are reimbursed as incurred and are not a set amount. I don't know what kind of travel she will be doing, but the figure initially strikes as a little high. I suggest you respond by offering to reimburse her as expenses are incurred (weekly, monthly, whatever the case may be). That would be a reasonable and fair response.Please remember to only rate my answer when you are 100% satisfied. IF you feel the need to rate "Poor Service" or "Bad Service", please stop and reply to me via the REPLY TO EXPERT button with the issue you have. I am not paid unless I get a rating of 3 to 5 Stars/Smiley Faces. If I have helped you with your question, please give me an appropriate rating so that I get credit for helping you. Thank you, Nate
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I'm sorry, but please clarify what you meant with the follow up information. Initially you started the $1500.00 would be for expenses. Are you now stating that this is a draw?
This is what i just read about her letter agreement that she would like me to sign.
Contractor shall perform the following services:
Obtain and service sellers of the Company’s products within territory of South Florida
(Miami, Fort Lauderdale and Palm Beach) on
Exclusive basis as a Regional Sales Manager for Onlyjackies TM
2) Contractors compensation shall be paid by Only Jackie’s Tan True LLC as followed:
3 ). Company Obligations. Company shall:
(a) provide Contractor with current information and samples for each new seasons to come.
(b) Make timely payments of monies owed and fees earned as specified herein as per Exihit A.
(b) Company should be fully responsible and liable for the quality of their products, replace defected merchandise as soon as possible and delivery on time to contractor.
(c) Company must provide contractor with a realistic production quantities , a whole sale discount list (excel/ by product) in order for contractor to be able to do the sale , create and maintain a good relationship with clients.
(d) Company must be financial responsible for all events created by contractor and approve by the company, to increase the line exposure as the Fashion’s week and many others, during the terms of this agreement.
. For the purposes of this Agreement, between Company and Contractor , “exhibit A” is to establish the relationship , specific obligations and payments between both parties .The company recognize Contractor as a representative of the Company and considerate “exhibit A” as part as the agreement between both parties. “Exhibit A”, may be amended from time to time under mutual consent .
Okay. So the draw is AGAINST the commissions. That's good for you. Essentially she is asking for $500.00 for travel and cell phone expenses. Based on that new information, this does seem like a fair agreement for both you and her. I see nothing wrong with it. If you have further questions, please feel free to continue. If not, please do remember to leave a positive rating for my assistance today.Thanks!Nate
Over 8 years of legal practice.
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