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Sales Representative Commission Agreement


Draft an Agreement between Company and Sales Rep on Commission. Protect your company's interests. Get expert legal advice.

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Document Description

The Sales Representative Commission Agreement is a document that outlines the terms between a company and a salesperson. It is important because it effectively defines their rights and obligations, consolidating the relationship between the two parties. The agreement begins with the basic information (such as name and address) of the company and the salesperson. It also specifies that the agreement will remain in effect until termination in accordance to the relevant provisions.

The document is divided into several sections. The first section, titled 'Sales Scope,' denotes the products that the salesperson will be responsible for. It emphasizes that the salesperson must adhere to certain parameters and obtain written approval from the company before using any promotional materials. The price will be solely determined by the company and a sales agreement template will be provided for all sales. Also, if applicable, the document includes a section on the territory in which the salesperson is authorized to sell the products.

The second section, titled 'Remuneration of Salesperson,' details the commission structure for. It denotes that the salesperson will receive a commission for each successful sale made, based on a percentage of the contract price. The agreement defines various terms regarding commission payment, such as the payable length and the meaning of a successful sale. It also specifies that the commission will only be paid if the contract price is received in full from the client.

The third section, titled 'Obligations of Salesperson,' outlines the responsibilities of the salesperson. It states that the salesperson must work diligently to secure business and must not make any commitments on behalf of the company without prior written consent. The section also prohibits the salesperson from entering into legal agreements with clients on behalf of the company and from carrying additional competing product lines without the company's consent. Also, it emphasizes the importance of maintaining the confidentiality of the company's business secrets.

The fourth section, titled 'Termination of Agreement,' explains the conditions for terminating the agreement. It states that either party can terminate the agreement by written notice at least three days before the intended termination date. It also specifies that certain clauses, such as the obligations of the salesperson and the non-compete clause, will survive despite the termination of the agreement. The section further clarifies that the salesperson will receive a commission on successful sales made before the termination date.

The fifth section, titled 'Non-Compete,' restricts the salesperson from selling any competing products for one year after termination, in order to protect the company's business interests.

The sixth section, titled 'Miscellaneous,' includes various additional provisions. It states that the salesperson will serve as an independent contractor and but not as an employee of the company. It also specifies that any notices under the agreement should be made in writing or by email. Also, this section denotes that the agreement constitutes the entire agreement between the parties and that any variations must be made in writing and signed by both parties. Finally, there are provisions stating the governing laws and jurisdiction.

In conclusion, the Sales Representative Commission Agreement is a comprehensive document that covers all aspects of the relationship between a company and a salesperson. It outlines the sales scope, remuneration, obligations, termination, non-compete, and miscellaneous provisions. By clearly defining the rights and responsibilities of both parties, the agreement helps ensure a mutually beneficial relationship.

How to use this document?


1. Review the Sales Scope section to understand the products that you will be selling on behalf of the company. Familiarize yourself with any specific requirements or limitations mentioned in this section.

2. Take note of the commission structure and payment terms outlined in the Remuneration of Salesperson section. Understand how your commission will be calculated and the timeline for payment.

3. Read and understand your obligations as outlined in the Obligations of Salesperson section. Ensure that you diligently work to secure business for the company and refrain from making commitments without prior consent.

4. Be aware of the termination conditions specified in the Termination of Agreement section. If either party intends to terminate the agreement, written notice must be provided at least three days in advance.

5. Comply with the non-compete clause mentioned in the Non-Compete section. Refrain from selling any competing products within the defined territory for three years after the termination of the agreement.

6. Familiarize yourself with the miscellaneous provisions in the Miscellaneous section. Understand your status as an independent contractor, the method of communication for notices, and the waiver of rights and remedies.

7. Take note of the governing laws and jurisdiction specified in the Governing Laws and Jurisdiction section. Understand the legal framework under which any disputes will be resolved.

8. If you have any questions or concerns about the agreement, seek clarification from the company before proceeding. It is important to have a clear understanding of your rights and responsibilities as outlined in the agreement.

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