Fillable Form Commission Sales Agreement

What is a Commission Sales Agreement?

A Commission Sales Agreement, or also referred to as the Sales Commission Contract Agreement, is a legal document or contract wherein an individual or a company takes on the role of a Commissions Sales Agent on behalf of an exporting company or an individual businessperson who takes on the role of the Principal.

In a Commission Sales Agreement, the Commission Sales Agent is tasked to introduce the Principal’s products to potential buyers in the external market. In exchange for this, the Commission Sales Agent will receive a commission based on the value of the business deals that have been arranged paid to his or her Principal.

Based on the nature of the Commission Sales Agreement or based on the products being sold, the legal agreement may be an ongoing term or it could also be a one-time thing. To ensure no misunderstandings or problems may arise in the future regarding financial expectations, the terms and conditions of the Commission Sales Agreement must be clearly defined between the Commission Sales Agent and the Principal.

The Commission Sales Agreement must include terms and conditions about the percentage of sales, how the commission structure will be paid; and in case the Principal and the Commission Sales Agent decide to renew their Commission Sales Agreement, the contract must also include terms regarding whether or not the agreed amount might increase or decrease based on the parties’ renewal terms.

A complete Commission Sales Agreement must contain the following information:

• The effective date of the Commission Sales Agreement
• The full legal name of the Commission Sales Agent
• The residence address of the Commission Sales Agent
• The full legal name of the Principal
• The residence address of the Principal
• Agreements between the Principal and the Commission Sales Agent
• Commission Terms
  • Percentage of the selling price that will be paid to the Commission Sales Agent
• The effective date and expiration date of the Commission Sales Agreement
  • Start Date
  • End Date
• Terms and conditions
  • Advertising
  • Non-compete
  • Confidentiality
  • Termination
• Date of signing
• The signatures of the parties
  • The signature of the Principal
  • The full legal name of the Principal
  • The signature of the Commission Sales Agent
  • The full legal name of the Commission Sales Agent

How to fill out a Commission Sales Agreement?

To fill out a Commission Sales Agreement, one must provide the following information:

Effective Date

Enter the date when this Commission Sales Agreement is made and when it will take effect.

Commission Sales Agent Name

Have the Commission Sales Agent enter his or her full legal name.

Commission Sales Agent Address

Have the Commission Sales Agent enter his or her residential address.

Principal Name

Have the Principal enter his or her full legal name.

Principal Address

Have the Principal enter his or her residential address.

Agreement

In this Commission Sales Agreement, the Commission Sales Agent must be prepared to sell the products on behalf of the Principal in return for a commission. Both the Commission Sales Agent and the Principal must agree to the following statements:

1. The Principal Agrees to give the Commission Sales Agent the right to sell the products.
2. The Commission Sales Agent must identify himself or herself as an authorized seller of the Principal.
3. The price of the products that will be sold must be set by the Principal.
4. The Commission Sales Agent must exert all of his or her effort to sell the products during the agreed duration in this Commission Sales Agreement.

Commission

The Principal must pay the agreed percentage of the selling price of the products to the Commission Sales Agent, those of which are exclusive of sales tax and other taxes.

Percentage of the Selling Price

Enter the percentage of the selling price that the Principal must pay to the Commission Sales Agent.

In this Commission Sales Agreement, the Commission Sales Agent will not be entitled to any kind of compensation for the services performed or expenses incurred in connection with this agreement other than the terms and conditions that were set out in the contract.

Term

The terms will include all of the agreements made by the Principal and the Commission Sales Agent.

Start Date

Enter the date when the Commission Sales Agreement will take effect.

End Date

Enter the date when the Commission Sales Agreement will end.

Advertising

In this Commission Sales Agreement, the Principal must provide the Commission Sales Agent with some advertising tools and materials for the demonstration of the products to help aid the Commission Sales Agent in selling the said products for the duration of the Selling Rights.

Non-Compete

In this Commission Sales Agreement, the Commission Sales Agent should not sell, represent, and assist anyone to sell any products that compete with the Principal’s products for the whole duration of the Selling Rights and for the calendar year immediately following the termination of the Selling Rights.

Confidentiality

In this Commission Sales Agreement, the Commission Sales Agent must keep the Principal’s business trade secrets, industry knowledge, customer information, supplier information, and research and development information a secret. This knowledge must remain confidential and must not be disclosed to any other parties even after the end or termination of the Commission Sales Agreement.

Termination

In this Commission Sales Agreement, the said contract may be terminated at any time by either of the parties, namely the Commission Sales Agent and the Principal, upon written notice to the party. Furthermore, the Commission Sales Agent must immediately cease to describe himself or herself as an authorized Sales Agent of the Principal.

By signing this Commission Sales Agreement, both the Principal and the Commission Sales Agent agree to the terms and conditions stated above and will hereby execute the agreement as of the current date.

Date of Signing

Enter the date of signing.

Principal Signature

Have the Principal affix his or her signature.

Principal Name

Have the Principal enter his or her full legal name.

Commission Sales Agent Signature

Have the Commission Sales Agent affix his or her signature.

Commission Sales Agent Name

Have the Commission Sales Agent enter his or her full legal name.