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Middleman Commission Agreement Template for Switzerland

A comprehensive legal agreement governed by Swiss law that establishes and regulates the commercial relationship between a principal company and a middleman/intermediary. The agreement defines the terms under which the middleman will facilitate business transactions or secure customers for the principal in exchange for commission-based compensation. It incorporates specific provisions required under Swiss law, particularly the Swiss Code of Obligations (OR/CO) Articles 412-418 governing brokerage contracts, and includes detailed terms on commission structure, territorial rights, performance expectations, and compliance requirements.

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What is a Middleman Commission Agreement?

The Middleman Commission Agreement is a vital commercial contract used when a business wishes to engage an intermediary to facilitate transactions or secure customers in exchange for commission-based compensation. This document is particularly relevant in the Swiss business context, where it must comply with specific provisions of the Swiss Code of Obligations governing brokerage contracts. It's commonly used when companies want to expand their market reach through external agents or representatives without establishing direct employment relationships. The agreement typically covers essential elements such as commission structures, territorial rights, performance expectations, reporting requirements, and compliance with Swiss commercial law. It's especially important in industries where intermediaries play a crucial role in business development and sales, providing legal protection and clarity for both the principal company and the middleman.

What sections should be included in a Middleman Commission Agreement?

1. Parties: Identification and details of the Principal and the Middleman, including full legal names, addresses, and registration details if applicable

2. Background: Context of the agreement, brief description of the Principal's business and the purpose of engaging the Middleman

3. Definitions: Definitions of key terms used throughout the agreement, including 'Services', 'Commission', 'Target Customers', etc.

4. Appointment and Scope: Formal appointment of the Middleman and detailed description of the services to be provided

5. Territory and Exclusivity: Geographic area where the Middleman is authorized to operate and whether the appointment is exclusive or non-exclusive

6. Commission Structure: Detailed explanation of commission rates, calculation methods, and payment terms

7. Payment Terms: Timing of commission payments, invoice requirements, and payment methods

8. Obligations of the Middleman: Specific duties, responsibilities, and performance standards expected from the Middleman

9. Obligations of the Principal: Principal's commitments, including provision of information, support, and materials

10. Intellectual Property: Rights and restrictions regarding the use of trademarks, logos, and other IP

11. Confidentiality: Obligations regarding confidential information and trade secrets

12. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

13. Post-Termination: Rights and obligations that survive termination, including commission on pending deals

14. General Provisions: Standard clauses including governing law, jurisdiction, entire agreement, and amendments

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

1. Non-Compete: Restrictions on Middleman's ability to work with competitors - include when protecting market position is crucial

2. Training and Support: Details of training and support provided by Principal - include for complex products/services

3. Performance Targets: Specific sales or performance goals - include when minimum performance levels are required

4. Compliance Requirements: Specific regulatory or industry compliance obligations - include for regulated industries

5. Insurance: Insurance requirements for the Middleman - include when services involve significant risks

6. Data Protection: GDPR and Swiss data protection law compliance - include when personal data is processed

7. Force Majeure: Provisions for unforeseeable circumstances - include for long-term or high-value arrangements

8. Alternative Dispute Resolution: Mediation or arbitration procedures - include for international arrangements

What schedules should be included in a Middleman Commission Agreement?

1. Commission Rates Schedule: Detailed breakdown of commission rates for different products/services

2. Territory Description: Detailed description or map of the authorized territory

3. Product/Service List: Complete list of products/services covered by the agreement

4. Reporting Templates: Standard forms for activity reporting and commission calculations

5. Marketing Guidelines: Guidelines for use of Principal's branding and marketing materials

6. Customer Categories: Definition of customer types and any associated commission variations

7. Performance Metrics: Detailed KPIs and measurement criteria if applicable

Authors

Alex Denne

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

Jurisdiction

Switzerland

Sector

Sales

Cost

Free to use

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