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Commission Partnership Agreement for Australia

Commission Partnership Agreement Template for Australia

A Commission Partnership Agreement is a legally binding document used in Australia to establish and govern a partnership arrangement where partners' compensation is primarily based on commission or performance-based metrics. The agreement complies with Australian partnership law and relevant state/territory legislation, setting out the terms for revenue sharing, partner responsibilities, operational procedures, and performance expectations. It includes detailed provisions for commission calculations, payment terms, territory allocations, and partnership governance while ensuring compliance with Australian Consumer Law and fair trading requirements.

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Commission Partnership Agreement

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What is a Commission Partnership Agreement?

The Commission Partnership Agreement serves as a foundational document for businesses and individuals entering into partnership arrangements in Australia where compensation is tied to performance or sales outcomes. This agreement type is particularly useful for sales-oriented businesses, professional services firms, and distribution partnerships where revenue sharing is a key component of the business model. The document establishes clear parameters for commission calculations, partner responsibilities, and operational procedures while ensuring compliance with Australian partnership law, consumer protection legislation, and relevant state/territory requirements. It includes essential provisions for partnership governance, dispute resolution, and termination procedures, making it suitable for both new partnerships and the formalization of existing commission-based relationships.

What sections should be included in a Commission Partnership Agreement?

1. Parties: Identification and details of all partners entering into the agreement

2. Background: Context of the partnership formation and commission arrangement

3. Definitions and Interpretation: Key terms used throughout the agreement and rules for interpretation

4. Partnership Structure: Legal structure of the partnership and roles of partners

5. Commission Structure: Detailed explanation of commission calculations, rates, and payment terms

6. Term and Commencement: Duration of the partnership and effective date

7. Partner Obligations: Core responsibilities and duties of each partner

8. Financial Management: Handle of finances, banking, accounting, and record-keeping requirements

9. Decision Making: Process for partnership decisions and voting rights

10. Intellectual Property: Ownership and use of partnership IP and brand assets

11. Confidentiality: Protection of partnership and client confidential information

12. Termination: Circumstances and process for ending the partnership

13. Dispute Resolution: Process for resolving conflicts between partners

14. General Provisions: Standard legal clauses including governing law, notices, and amendments

What sections are optional to include in a Commission Partnership Agreement?

1. Non-Compete: Restrictions on competing activities during and after partnership - include when partners may compete in same industry

2. Marketing and Branding: Guidelines for marketing activities and brand usage - include for customer-facing businesses

3. Insurance: Required insurance coverage - include for high-risk industries or significant assets

4. Good Faith and Fair Dealing: Additional ethical obligations - include for complex or high-value partnerships

5. Force Majeure: Provisions for unforeseen circumstances - include when business continuity is critical

6. Assignment and Succession: Rules for transferring partnership interests - include when continuation planning is important

7. International Operations: Guidelines for international business - include for cross-border operations

What schedules should be included in a Commission Partnership Agreement?

1. Schedule 1 - Commission Rates: Detailed breakdown of commission percentages and calculation methods

2. Schedule 2 - Territory Allocation: Geographic or market segments assigned to each partner

3. Schedule 3 - Performance Targets: Specific revenue or performance goals tied to commission structures

4. Schedule 4 - Operating Procedures: Detailed day-to-day operational procedures and protocols

5. Schedule 5 - Partner Contact Details: Complete contact information and notice details for all partners

6. Schedule 6 - Asset Register: List of partnership assets and their allocation

7. Appendix A - Required Forms: Standard forms used in partnership operations

8. Appendix B - Compliance Checklist: Regulatory and internal compliance requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok˰ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

tiktok˰

Cost

Free to use
Relevant legal definitions








































Clauses









































Relevant Industries

Real Estate

Financial Services

Insurance

Professional Services

Retail

Sales and Distribution

Marketing and Advertising

Business Consulting

Technology Sales

Manufacturing Distribution

Import/Export

Recruitment

Automotive Sales

Relevant Teams

Legal

Commercial

Sales

Business Development

Partnerships

Operations

Compliance

Finance

Executive Leadership

Distribution

Channel Management

Professional Services

Relevant Roles

Business Development Manager

Sales Director

Managing Partner

Commercial Director

Partnership Manager

Channel Manager

Sales Agent

Business Owner

Chief Executive Officer

Chief Commercial Officer

Regional Sales Manager

Distribution Manager

Professional Services Partner

Operations Director

Legal Counsel

Compliance Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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