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Sales Commission Agreement
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Prepared for:
[Agent Company]

Prepared by:
[Sender Company]
Header with company logo
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Sales Commission Agreement

This Sales Commission Agreement (hereinafter referred to as the "Agreement") is entered into effective as of [Date]

By and Between

Company [Company Name] (hereinafter referred to as the “Principal”) whose registered office is at [Address] and registration number [Registration Number] and;

Agent [Agent Name] (hereinafter referred to as the “Agent”) with its registered office at [Address],

The Principal and the Agent are collectively referred to as the "Parties" and "Party" individually.

WHEREAS the Principal wishes to market the products 

AND WHEREAS the Agent is willing to sell the products of the Principal in return for a commission

Both Parties have agreed to enter into this Agreement based on the following terms and conditions:

Terms and Conditions

1. Selling Rights

The Principal grants the Agent, the authority to sell its products within the territory for a period of [Period] commencing from the date of [Date]. The Agent shall not sell the products outside the territory:

  1. The Agent shall use its best endeavors to promote and sell the products for the duration mentioned above; and shall furnish the Principal with the detailed information;
  1. The Agent is duly authorized to sell the products of the Principal in the course of the efforts to sell the products and shall not sell the products in the Agents own name;

2. Pricing

The Principal shall fix the selling price of the products [Amount]; the Agent shall only sell the products at a price fixed by the Agent.

3. Orders

The Agent shall obtain in writing the order of the products from the buyers signed by them and remit the orders to the Principal.

4. Commission

The Principal shall pay the Agent a commission of [%] of the selling price for each part of the products duly remitted by the Agent in accordance with this Agreement.

5. Advertising and Information Materials

The Principal shall furnish the Agent with reasonable quantities of advertising and informative materials for selling the product.

6. Confidentiality

The Agent shall maintain strict confidentiality of the Principals’ business secrets and any such data which is deemed confidential. The Agent shall not disclose them to any third party.

7. Termination

If the Agent at any time during the term of this Agreement fails to meet the requirements of the Principal, then this Agreement shall be terminated.

8. Assignment

The Agent shall not assign this Agreement without the prior written consent of the Principal.

9. Arbitration

In the event of any dispute arising in and out of this Agreement between the Parties, it shall be resolved by Arbitration. There shall be [Number of Arbitrators] which shall be appointed by [Party(s) Name]. The place of Arbitration shall be [Place of Arbitration] and Seat shall be [State of 'State']. The arbitrators’ decision shall be final and will be binding upon both Parties.

10. Miscellaneous

  1. Severability: In the event, any provision of this Agreement is deemed to be invalid or unenforceable, in whole or part, that part shall be severed from the remainder of this Agreement and all other provisions shall remain in full force and effect as valid and enforceable.
  1. Notices: Any notices required or permitted by this Agreement shall be in writing and delivered by certified mail or courier to the above-mentioned address.
  1. Governing Law: This Agreement shall be governed by the jurisdiction of [State]. Any dispute arising out of this Agreement shall be submitted to arbitration before the [Arbitrator] whose decision shall be final and binding upon both the Parties.

Acceptance and Signature

IN WITNESS THEREOF, the Agent and the Principal respectively have hereby set their hands on the day and year first above mentioned.
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Free Sales Commission Agreement Templates

Having difficulty in setting out the terms and conditions for the Sales Agent? Check out our template for an efficient way to set out the commission details.
Get started with this template
Purchase/Sales

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