Commission Agreement by EasyLegalDocs
This Commission Agreement outlines the terms under which a Company authorizes an Agent to sell its products or services within a specified geographical area. It details the commission structure, the independent contractor relationship, and includes provisions for confidentiality and termination. This template helps formalize the sales agency relationship between the parties.
COMMISSION AGREEMENT
This Commission Agreement (hereinafter referred to as the "Agreement") is made and effective [effective date] (the “Effective Date”),
BY AND BETWEEN:
[company name], with an address of [company address], hereinafter referred to as the “Company”.
AND:
[agent name], with an address of [agent address], hereinafter referred to as the “Agent”, collectively referred to as the “Parties”.
AGREEMENT
The Parties hereby agree that the Company authorizes the Agent to sell [products or services] on behalf of the Company. The Agent, in turn, agrees to indemnify himself/herself as the authorized agent of the Company for such sale.
THE SALE
The Parties agree that the prices of the product(s)/service(s) will be set by the Company, that the Company will provide any necessary promotional materials for the Agent to use in the sales process, and the Company will provide a Sales Agreement for the Agent to use in the sale of the product.
TERM
This Agreement shall be effective on the Effective Date and will end on [end date]. The term of this Agreement may be extended upon mutual written consent from both Parties.
GEOGRAPHY
The Parties agree that the Agent will sell the product(s) in the following geographical area/territory and will not sell the product(s) anywhere else:
COMMISSION EARNINGS
The Parties hereby agree that the Agent will be paid a commission by the Company by the following means:
RELATIONSHIP OF THE PARTIES
The Parties agree that this Agreement does not establish an exclusive relationship. The Parties are deemed to be independent contractors.
CONFIDENTIALITY
All terms and conditions of this Agreement and any materials provided during the term of the Agreement must be kept confidential, unless legally required to disclose. This section will remain in effect even after the termination of this Agreement for a period of [confidentiality period].
TERMINATION
This Agreement may be terminated in the event of a breach of this Agreement, or at any time by providing written notice to the other party [termination notice period] days prior to termination. Upon termination, the Agent will return all Company products and/or any other content at his/her earliest convenience, but not beyond [return period] days.
REPRESENTATION AND WARRANTIES
Both Parties represent that they are fully authorized to enter this Agreement, and the performance of their responsibilities will not violate any laws or rights of others, or any other agreements.
SEVERABILITY
If any provision of this Agreement is found unenforceable, the remaining provisions will remain in effect in accordance with the Parties' intention.
GOVERNING LAW
This Agreement is governed by, and interpreted in accordance with, the laws of [governing law jurisdiction] without regard to its principles of conflicts of law.
ALTERNATIVE DISPUTE RESOLUTION
Any disputes arising out of this Agreement will be resolved through arbitration/mediation/negotiation (choose one) in accordance with the laws of [governing law jurisdiction].
AMENDMENTS
Any amendments to this Agreement must be in writing and signed by both Parties to be enforceable.
ASSIGNMENT
This is a preview. The full template is free on GitLaw.
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About this template
What is this template?
This is a commercial contract between a principal and a sales agent. It contains specific placeholders for geographic territory restrictions and the mandatory use of company-provided sales forms, which differentiates it from a general service agreement. It is not an employment contract, as it explicitly defines the parties as independent contractors.
When should you use it?
Use this when hiring an outside representative to find customers for products at company-set prices. If the representative is an employee rather than a contractor, use an Employment Agreement with a Commission Addendum instead.
What's inside
| Clause | Name | What it does |
|---|---|---|
| AGREEMENT | Agreement | The Company authorizes the Agent to sell specified products or services while the Agent agrees to act as an authorized representative. |
| THE SALE | The Sale | The Company maintains control over product pricing and provides the Agent with a mandatory Sales Agreement for customer transactions. |
| GEOGRAPHY | Geography | The Agent is restricted to selling the products within a specific defined territory and is prohibited from selling elsewhere. |
| RELATIONSHIP OF THE PARTIES | Relationship of the Parties | The document defines the parties as independent contractors and expressly states the relationship is non-exclusive. |
| CONFIDENTIALITY | Confidentiality | Obligations to keep agreement terms private survive termination for a specific period of years defined in the document. |
| TERMINATION | Termination | Either party may terminate the relationship by providing a specified number of days of written notice. |
Who it's for
- a company authorizing an independent contractor to sell specific products within a restricted geographic territory
- an individual sales representative acting as an authorized agent for a company on a non-exclusive basis
- businesses requiring a structured commission payout and product return protocol upon contract termination
How long it runs and how it's signed
United States note
This version is drafted for US law generally. Contract, employment and consumer rules vary by state — for example on non-competes and at-will employment. Tell GitLaw which state applies and it adjusts the draft.
Frequently asked questions
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