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Sales Representative Commission Agreement


This Sales Representative Commission Agreement template is perfect for salespersons to make sure they get the commission they deserve.

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Document Description

Agreement between Company and Sales Representative re Commission to be received by the Sales Representative. This is drafted in favour of the Sales Representative.

The Company agrees to pay the Salesperson as compensation for his services in respect of each Successful Sale made, a commission of [COMMISSION_PERCENTAGE] per cent. of the Contract Price pursuant to each Sale Agreement, to be payable from (and including) the First Sale Date.

“Contract Price” is the amount (i) stipulated in a Sale Agreement as the contract price payable to the Company from the relevant Client; and (ii) which has been paid in full to the Company from that client.

“New Client” is a client that is not and has never been party to a Sale Agreement.

“Sale Agreement” is an agreement entered into between the Company and the relevant client whereby that client has agreed to engage the Company in the production of a product or products.

“Successful Sale” shall mean (i) a sale to a New Client which has been successfully solicited by the Salesperson; and (ii) for which at least one Sale Agreement has been entered into between the Company and that New Client.


How to use this Document?

This document should be carefully read by the Company and the Sales Representative.

The sale commission agreement may be used between the Company and the Sales Representative, to detail the responsibilities of the Sales Representative and the commission to be paid by the Company upon a successful sales. 

Both parties should sign and return a copy, and once signed, both parties should get a copy. To avoid any future disputes, both parties may wish to have their signatures witnessed.

If either party wishes to amend the agreement in the future, both parties should agree to do so, and the original agreement and amendments should be recorded in writing and signed by both parties.  

(b) Any payment of commission to the Salesperson in respect of any Sale Agreement shall be made by the Company within <? echo $PAYMENT_DAYS; ?> days after the date on which the Contract Price is received in full from that client in respect of that Sale Agreement. For the avoidance of doubt, if the Contract Price is not received in full from any client in respect of any Sale Agreement, the Company shall have no obligation to pay any commission to the Salesperson in respect of that Sale Agreement.

(c) Any certification or determination by the Company of a rate or amount under this Agreement is, in the absence of manifest error, conclusive evidence of the matters to which it relates.

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