The Agreement Between Buyer And Commission Agent serves as a critical legal framework for businesses operating in Australia that utilize commission-based sales arrangements. This document is essential when a business (the buyer) wishes to engage an independent agent to facilitate transactions on their behalf in exchange for commission-based compensation. The agreement comprehensively addresses key aspects including agent authority, commission calculations, performance expectations, and compliance with Australian federal and state regulations. It is particularly relevant for businesses expanding their sales channels through intermediaries, requiring clear documentation of the commercial relationship, responsibilities, and financial arrangements. The document ensures compliance with Australian law while providing flexibility to accommodate industry-specific requirements and various commission structures.
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1. Parties: Identification and details of the Buyer and Commission Agent, including ABN/ACN and registered addresses
2. Background: Context of the agreement, relationship between parties, and purpose of the arrangement
3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules for interpretation
4. Appointment and Scope: Formal appointment of the Commission Agent and detailed scope of authority
5. Term: Duration of the agreement, including commencement date and any renewal provisions
6. Commission Agent's Authority: Specific powers granted to the agent and any limitations on authority
7. Commission Structure: Detailed explanation of commission calculations, rates, and payment terms
8. Payment Terms: Timing and method of commission payments, invoicing requirements, and payment disputes
9. Obligations of the Commission Agent: Agent's duties, responsibilities, reporting requirements, and standard of service
10. Obligations of the Buyer: Buyer's responsibilities, including provision of information and support
11. Confidentiality: Protection and handling of confidential information by both parties
12. Intellectual Property: Ownership and usage rights of intellectual property
13. Termination: Grounds for termination, notice requirements, and consequences of termination
14. General Provisions: Standard clauses including notices, governing law, dispute resolution, and entire agreement
1. Performance Targets: Include when specific performance metrics or KPIs are required for the agent
2. Territory Restrictions: Include when the agent's authority is limited to specific geographic areas
3. Sub-agents: Include when the agent may need to appoint sub-agents
4. Insurance Requirements: Include when specific insurance coverage is required from the agent
5. Non-Compete Provisions: Include when restrictions on competitive activities are necessary
6. Marketing and Promotion: Include when the agent has specific marketing responsibilities
7. Training Requirements: Include when specific training or certification is required
8. Force Majeure: Include when protection against unforeseen events is required
9. Data Protection: Include when personal data processing is involved
10. Compliance Requirements: Include when specific regulatory compliance obligations need to be detailed
1. Schedule 1 - Commission Rates: Detailed breakdown of commission rates, tiers, and calculation methods
2. Schedule 2 - Territory Map: Map and description of authorized territory (if applicable)
3. Schedule 3 - Approved Products/Services: List of products or services the agent is authorized to sell
4. Schedule 4 - Reporting Requirements: Templates and specifications for required reports
5. Schedule 5 - Performance Metrics: Detailed KPIs and measurement criteria
6. Appendix A - Operating Procedures: Detailed procedures for day-to-day operations
7. Appendix B - Compliance Checklist: Required compliance measures and documentation
8. Appendix C - Contact Details: Key contacts and escalation procedures for both parties
Authors
Relevant legal definitions
Clauses
Relevant Industries
Retail
Real Estate
Financial Services
Insurance
Manufacturing
Import/Export
Wholesale Trade
Agricultural Products
Mining
Professional Services
Technology
Telecommunications
Automotive
Relevant Teams
Legal
Sales
Commercial
Procurement
Operations
Finance
Compliance
Business Development
Contract Administration
Risk Management
Relevant Roles
Sales Director
Commercial Manager
Procurement Manager
Business Development Manager
Legal Counsel
Contracts Manager
Operations Manager
Chief Commercial Officer
Sales Operations Manager
Channel Manager
Agency Relations Manager
Compliance Officer
Finance Manager
Regional Sales Manager
General Manager
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