Although this article does not contain an exhaustive list of issues to consider in a commercial agent agreement (e.g. B we have not dealt with how freight claims are handled, the risks associated with the reclassification of independent contractors, insurance requirements, etc.), it contains a list of key issues that are often poorly handled or mishandled. in agreements between commercial agents and 3PLs. Both the 3PL and the commercial agent can benefit from well-developed agreements and effective negotiation and understanding of the provisions of the agreement. If both parties understand their agreement from the beginning, the risk of litigation will be minimized if the relationship continues. I hope that by dealing with the issues mentioned in this article, 3PLs and commercial agents can find themselves in situations that promote long-term and mutually fruitful relationships. A shocking number of agent agreements do not define which actions the agent performs that give rise to commissions and which are not. It is important to have a mechanism by which an objective (non-subjective) rule applies to determine whether commissions are due. A simple example is to add to the agreement a list of clients for whom the agent is entitled to compensation. This schedule could be modified by mutual agreement between the 3PL and the agent if new customers are brought on board by the agent.
If the agent has larger accounts that may have multiple locations, but the agent only has contacts on a single site, it may be necessary to define customers not only by company, but also by layout or traffic lane. The secret for freight brokers who make real money is to have a good stable of freight brokerage agents operating under their operating power. Make sure your sales team is producing and that you have them under a good contract. We include the following agreements and sales aids, Freight Broker Sales Agent Agreement and Freight Broker Agent Shipper Scripts. Another important consideration with regard to non-competition rules is whether they are applicable if necessary. This is typically a matter of state law. Even if the agreement contains an applicable legal provision, in the event of an appeal in another State, the court may refuse to enforce the applicable law on non-competition because of the public policy of the State in which the court has its seat. It is therefore important to take into account the potentially applicable legislation and to design non-competition rules that are closely adapted to the protection of the interests of the 3PL while remaining applicable. The importance of defining how commissions are to be calculated is equally important in determining when commissions are due. . . .