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Commission Agreement

Online Catalogue |  Commission Agreement

Commission Agreement

Commission Agreement


Price: $20.00 (Excluding VAT at 20%)

This is a precedent commission agreement. It is a flexible document, designed in such a way that it may be adapted for use in a wide range of circumstances where one person or company must make payments to another person or company on a commission basis. The first few sections of the agreement may be reviewed here:

Precedent Commission Agreement

One possible use of this template is to create a referral agreement (also known as an introduction agreement). Referral agreements provide for the payment of commission following the introduction of a new customer. In these circumstances, the commission payable to the introducer is often a percentage of the amount paid by the new customer to the supplier.

Another common situation for using a commission contract is where a service provider wants to be remunerated by way of commission so as to share in the profits of an enterprise or project, without taking on the rights and responsibilities of an equity share.

The key provisions of the agreement are as follows:

  • Definition of "base amount": this is used in the calculation of the amounts payable under the agreement.
  • Definition of "trigger event": this definition specifies the event that gives rise to payments.
  • Commission: this clause sets out exactly what must be paid, when and how.
A full listing of the section titles in the commission agreement is as follows: (1) Definitions and interpretation, (2) Term, (3) Commission, (4) Warranties, (5) Limitations and exclusions of liability and indemnities, (6) Termination, (7) Consequences of termination, and (8) General.

The commission agreement is 7 pages long and is supplied by email link, in MS Word (.doc) form, immediately following receipt of payment.

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Commission Agreement FAQ

Commission Agreement FAQ

How are commission payments calculated under this agreement?

The template commission agreement uses three defined terms to structure the commission payments. First, a "base amount" is defined. This base amount could for example be the amount payable under a category of contract. Second, a "trigger event" is defined, which is the event giving rise to the payment obligation. An example of a trigger event might be a company entering into a contract following a referral. Third, a "commission" level is defined, a percentage of the base amount payable by one party to the other in respect of a trigger event.

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Professional documents

The contract forms and precedents on this website are designed for use by lawyers and other contract professionals. They are jurisdiction-neutral, and need to be adapted for a particular jurisdiction before use. Because of the application of substantive national laws and national rules of interpretation, non-professionals should avoid using our forms to create legal documentation unless the legal documentation will be checked by an appropriately qualified lawyer before execution or use.

Online Catalogue |  Commission Agreement



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