Business OS
Finance & AccountingFinancing

Commission Sales Agreement

This template is a legally binding agreement between a company and a commission-based salesperson, outlining the terms and conditions of their employment. It is suitable for businesses operating in a generic Southern African context.

Updated today
sales agreementcommissionemployment contractSMESouthern Africabusiness template

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

Commission Sales Agreement

This Commission Sales Agreement (hereinafter referred to as the “Agreement”) is made and entered into on this {{day}} day of {{month}}, {{year}}, by and between:

{{company_name}}, a company duly registered under the laws of {{country}}, with its principal place of business at {{company_address}} (hereinafter referred to as the “Company”); and

{{salesperson_name}}, an individual residing at {{salesperson_address}}, holding identification number {{salesperson_id_number}} (hereinafter referred to as the “Salesperson”).

Collectively referred to as the “Parties.”

1. Engagement and Responsibilities

1.1. The Company hereby engages the Salesperson as an independent contractor to solicit sales for the Company’s products/services, specifically {{products_services_description}}.

1.2. The Salesperson shall be responsible for independently performing their duties, including but not limited to, lead generation, client meetings, product demonstrations, and closing sales.

1.3. The Salesperson shall at all times conduct themselves professionally and represent the Company's brand and values ethically.

2. Commission Structure

2.1. The Salesperson shall be compensated solely on a commission basis, calculated as {{commission_percentage}}% of the net revenue generated from completed sales directly attributable to the Salesperson’s efforts.

2.2. Net revenue is defined as the total sales price less any {{deductions_e.g._returns,_discounts}}.

2.3. Commissions will be paid {{payment_frequency_e.g._monthly,_bi-weekly}} on the {{day_of_month_or_week}} of each {{period}} for sales reconciled in the preceding {{period}}. A detailed statement of sales and commission earned shall accompany each payment.

3. Term and Termination

3.1. This Agreement shall commence on {{start_date}} and shall continue until terminated by either Party in accordance with the provisions of this Section.

3.2. Either Party may terminate this Agreement without cause by providing {{notice_period_days}} days' written notice to the other Party.

3.3. Either Party may terminate this Agreement immediately with written notice for material breach of any terms herein, provided a reasonable opportunity to cure the breach (if curable) has been given and not acted upon within {{cure_period_days}} days.

4. Independent Contractor Status

4.1. The Salesperson is an independent contractor and not an employee, partner, or agent of the Company. The Salesperson shall have no authority to bind the Company to any obligation without prior written consent.

4.2. The Salesperson is solely responsible for all income tax, social security contributions, and other statutory payments arising from the compensation received under this Agreement.

5. Confidentiality

5.1. The Salesperson agrees to keep confidential all proprietary and confidential information of the Company, including but not limited to, customer lists, pricing strategies, marketing plans, and product development, during and after the term of this Agreement.

5.2. Unauthorized disclosure of confidential information shall be considered a material breach of this Agreement.

6. Governing Law and Dispute Resolution

6.1. This Agreement shall be governed by and construed in accordance with the laws of {{country}}.

6.2. Any dispute, controversy, or claim arising out of or relating to this Agreement, or the breach, termination, or invalidity thereof, shall be settled by amicable negotiation between the Parties. If no resolution is reached, the dispute shall be referred to arbitration in accordance with the rules of the {{arbitration_body}}.

7. Entire Agreement

This Agreement constitutes the entire agreement between the Parties concerning the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations, and discussions of the Parties, whether oral or written.

Signature Block

IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first above written.

For and on behalf of {{company_name}}:

___________________________

Name: {{company_representative_name}}

Title: {{company_representative_title}}

Date: {{signature_date}}

___________________________

Salesperson: {{salesperson_name}}

ID Number: {{salesperson_id_number}}

Date: {{signature_date}}

Related templates