A Commission Agreement is an agreement between two parties where one party sells,
distributes or advertises goods or services on the other party's behalf. Upon the sale of
the goods or services, the party whom sold, distributed or advertised the goods,
receives a share of the profits based on a percentage. This document has many
customizable clauses, such as the type of goods or services to be sold, term,
commission percentage, date of payment, and a non-competition clause. This
document is ideal for small businesses or other entities that want to compensate their
employees on a commission basis.
COMMISSION AGREEMENT
This Commission Agreement (herein referred to as the “Agreement”) is made and entered into
this ___ day of ____________, 20___ (herein referred to as the “Effective Date”), by and
between ___________________________________ (herein referred to as the “Agent”) whose
offices are located at _________________________________ and ________________________
(herein referred to as the “Client”) whose offices are located at _______________________,
hereinafter collectively referred to as the “Parties”.
WHEREAS the Client desires to retain the Agent to sell and market the goods listed on Schedule
“A” attached hereto (the “Goods”).
AND WHEREAS the Agent wishes to sell and market the Goods on behalf of the Client in
return for a commission fee (the “Commission”).
NOW, THEREFORE in consideration of the foregoing and of the mutual promises and
covenants contained herein, and other good and valuable consideration, the receipt of which is
hereby acknowledged, the Parties hereto agree as follows:
I. ENGAGEMENT
1.01 The Client and the Agent hereby agree that the Client shall retain the Agent to sell and
market the Goods on behalf of the Client and the Agent shall have the (non-exclusive/exclusive)
right to sell and market the Goods on behalf of the Client.
1.02 The Agent hereby agrees that he/she shall sell and market the Goods in the following
territories (the “Territories”) and the Agent hereby further agrees that he/she shall not attempt at
any time to sell or market the Goods in any territories outside of the Territories listed hereunder:
(i)
(ii)
(iii)
1.03 The Agent shall sell and market the Goods to the best of his/her abilities and shall
provide to the Client, upon written request, details of the Agents efforts in the sale and marketing
of the Goods.
1.04 The Agent shall at all times, identify himself/herself as a duly authorized and appointed
Agent of the Client for the purposes of selling or marketing the Goods.
1.05 The Agent shall sell and market the Goods at the prices set by the Client, and at no time
shall the Agent sell the Goods for any other price(s), unless specified by the Client to the Agent
in writing.
II. TERM
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2.01 The Client and the Agent hereby agree that the term of this Agreement (the “Term”) shall
commence on the Effective Date, and shall continue for a period of __________ (___)
months/years, ending on the ____ day of ____________, 20__.
III. COMMISSION
3.01 The Client shall pay to the Agent, commission (“Commission”) at the rate of _________
(____%) of the selling price of the Goods, exclusive of any and all applicable taxes, upon full
payment of the Goods purchased.
3.02 The Client hereby agrees that it shall pay the Commission to the Agent on a monthly
basis, on or before the _____ day of each and every month, by way of certified check, money
order, wire transfer, direct deposit, or by such other means as the Client and the Agent in writing
may agree.
3.03 The Client and the Agent hereby agree that the Agent shall not be entitled to any
compensation for any services or expenses incurred in connection with this Agreement, other
than as set out herein.
IV. MATERIALS
4.01 For the duration of this Agreement, the Client at its sole cost, shall supply to the Agent,
any materials relating to the Goods to be sold and marketed to aid the Agent.
V. INTELLECTUAL PROPERTY RIGHTS
5.01 The Agent hereby acknowledges and agrees that he/she will not hold any intellectual
property rights in or to any of the Goods and that Client owns all intellectual property rights to
the Goods.
VI. NON-COMPETITION
6.01 The Agent hereby agrees that he/she shall not at any time for the duration of this
Agreement, sell or market any other goods for any other third party, that are similar or may be
confused with the Goods sold by the Client.