Sales

Commission Agreement Template

An agreement setting out how commissions are earned and paid to a salesperson, agent, or referral partner.

What this template includes

✓Appointment and commission rate
✓When commission is earned and paid
✓Chargebacks on refunds and cancellations
✓Duties, expenses, and independent status
✓Term, termination, and governing law

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Commission Agreement Template

COMMISSION AGREEMENT

This Commission Agreement (the "Agreement") is made on [DATE] between:

Company: [COMPANY NAME], located at [ADDRESS] ("Company"); and

Representative: [REPRESENTATIVE NAME], located at [ADDRESS] ("Representative").

1. APPOINTMENT
The Company engages the Representative to [sell / refer / promote] the Company's products or services (the "Products") on a [non-exclusive / exclusive] basis in [TERRITORY, if any].

2. COMMISSION
The Company will pay the Representative a commission of [PERCENTAGE]% of [net sales / revenue] generated by the Representative. "Net sales" means the amount actually received by the Company, excluding taxes, shipping, discounts, and refunds.

3. WHEN COMMISSION IS EARNED
A commission is earned only when the Company has received full payment from the customer for a qualifying sale directly resulting from the Representative's efforts.

4. PAYMENT TERMS
Commissions are calculated [monthly / per sale] and paid within [NUMBER] days after the Company receives payment from the customer, together with a statement of the sales included.

5. CHARGEBACKS
If a customer cancels, refunds, or fails to pay after a commission has been paid, the Company may deduct the corresponding amount from future commissions or require repayment.

6. DUTIES OF THE REPRESENTATIVE
The Representative will use reasonable efforts to promote and sell the Products, act honestly and in the Company's best interest, and not make any representations about the Products that the Company has not authorized.

7. EXPENSES AND INDEPENDENT STATUS
The Representative is an independent contractor, responsible for their own taxes and expenses unless otherwise agreed, and has no authority to bind the Company beyond taking orders.

8. CONFIDENTIALITY
The Representative will keep the Company's non-public information (including pricing and customer details) confidential, during and after this Agreement.

9. TERM AND TERMINATION
This Agreement begins on [START DATE] and continues until terminated by either party with [NUMBER] days' written notice. Commissions properly earned before termination will still be paid, subject to the chargeback terms above.

10. GENERAL PROVISIONS
(a) Governing Law. This Agreement is governed by the laws of [STATE/COUNTRY].
(b) Entire Agreement. This Agreement is the complete agreement between the parties and replaces any prior discussions, understandings, or agreements on this subject.
(c) Amendments. Any change to this Agreement must be in writing and signed by both parties.
(d) Severability. If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions will remain in full effect.
(e) Waiver. If a party does not enforce a provision, it does not give up its right to enforce that or any other provision later.
(f) Assignment. Neither party may assign or transfer this Agreement without the other party's prior written consent.
(g) Notices. Any notice under this Agreement must be given in writing (email is acceptable) to the other party.

IN WITNESS WHEREOF, the parties have signed this Agreement.

Company
Date: ____________
Name: [COMPANY NAME]
Title: [SIGNATORY TITLE]
Signature: ______________________

Representative
Date: ____________
Name: [REPRESENTATIVE NAME]
Signature: ______________________

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Disclaimer: This template is provided for general informational purposes only and is not legal advice. Laws vary by location. For important agreements, consider having a qualified lawyer review your contract before signing.

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