Document background
The Commission Guarantee Agreement is utilized when parties seek to establish a secure commission-based commercial relationship under Belgian law, typically involving a principal company, a commercial agent, and a guarantor. This document becomes necessary when there's a need to provide additional security for commission payments, particularly in high-value commercial relationships or when dealing with new business partnerships. The agreement details the commission structure, calculation methods, and payment terms while incorporating guarantee provisions that ensure the agent's commission entitlements are protected. The guarantee element provides security for the agent, while the commission structure allows the principal to establish clear performance metrics and payment obligations. The document must comply with Belgian legal requirements, including the Belgian Civil Code, Commercial Code, and the Law of 13 April 1995 on Commercial Agency Agreements, as well as relevant EU directives.
