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The primary question from commissioned salespeople is whether they need a contract. The lawyer's answer is that it depends on state law, as over 30 states in the U.S. have sales rep protection laws, varying in strength. In states with robust protection statutes that grant territorial rights, it may actually be advisable not to have a written contract. The controversial aspect lies in the idea that, in these strong protection states, signing a contract could limit the sales representative's rights. Thus, understanding local laws is crucial before deciding on a contract.
