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Simple Sales Commission Agreement for Switzerland

Simple Sales Commission Agreement Template for Switzerland

A Sales Commission Agreement governed by Swiss law that establishes the terms and conditions under which a sales representative or agent will promote and sell products or services on behalf of a principal company. The agreement defines commission structures, payment terms, territorial rights, and obligations of both parties while ensuring compliance with Swiss commercial law, particularly the Swiss Code of Obligations (OR/CO). It includes provisions for performance metrics, reporting requirements, and termination conditions, structured to protect both parties' interests while facilitating effective sales operations.

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Simple Sales Commission Agreement

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What is a Simple Sales Commission Agreement?

The Simple Sales Commission Agreement is essential for businesses operating in Switzerland that engage external sales representatives or agents to promote and sell their products or services. This document, governed by Swiss law and particularly the Swiss Code of Obligations, establishes the commercial relationship between a principal company and its sales representatives, defining how commissions are earned, calculated, and paid. It's commonly used when companies want to expand their sales reach without hiring full-time employees, offering a performance-based compensation structure. The agreement includes critical elements such as territory definitions, sales targets, reporting requirements, and commission structures, while ensuring compliance with Swiss commercial and agency laws. It's particularly valuable for businesses seeking flexible sales force solutions while maintaining clear legal and operational frameworks.

What sections should be included in a Simple Sales Commission Agreement?

1. Parties: Identification of the principal company and the sales agent/representative, including full legal names, registration details, and addresses

2. Background: Context of the agreement, brief description of the principal's business, and purpose of engaging the sales representative

3. Definitions: Key terms used throughout the agreement, including 'Products', 'Territory', 'Customers', 'Commission', 'Sales', etc.

4. Appointment and Scope: Formal appointment of the sales representative, nature of the relationship (non-exclusive/exclusive), and territorial scope

5. Term and Termination: Duration of the agreement, renewal provisions, and circumstances for termination

6. Commission Structure: Base commission rates, calculation methods, and timing of commission payments

7. Payment Terms: Invoice requirements, payment schedule, currency, and method of payment

8. Representative's Obligations: Core duties, sales targets, reporting requirements, and professional conduct expectations

9. Principal's Obligations: Support to be provided, product information, training, and marketing materials

10. Intellectual Property: Usage rights for trademarks, logos, and marketing materials

11. Confidentiality: Protection of business information and trade secrets

12. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction for disputes

What sections are optional to include in a Simple Sales Commission Agreement?

1. Non-Compete: Restrictions on representing competing products, used when protecting market position is crucial

2. Customer Protection: Provisions protecting existing customer relationships, relevant for territories with established customers

3. Performance Targets: Specific sales targets and consequences for missing them, used in performance-based relationships

4. Training Requirements: Mandatory training obligations, relevant for technical or complex products

5. Insurance: Required insurance coverage, important for high-value products or regulated industries

6. Data Protection: FADP compliance provisions, necessary when handling significant customer data

7. Post-Termination Obligations: Duties after agreement ends, important for protecting business interests

8. Force Majeure: Provisions for unforeseeable circumstances, relevant in volatile markets or regions

What schedules should be included in a Simple Sales Commission Agreement?

1. Schedule 1 - Products: List of products/services covered by the agreement, with descriptions and pricing

2. Schedule 2 - Commission Rates: Detailed commission structure, including any variations by product or customer type

3. Schedule 3 - Territory: Detailed description of geographical territory and any excluded accounts

4. Schedule 4 - Sales Targets: Specific performance metrics and evaluation criteria

5. Schedule 5 - Reporting Templates: Standard forms for sales reports and commission calculations

6. Appendix A - Customer List: List of existing customers and any special arrangements

7. Appendix B - Marketing Guidelines: Rules for use of principal's branding and marketing materials

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 | Serial Founder & Legal AI Author

Jurisdiction

Switzerland

Document Type

Sales Contract

Sector

Sales

Cost

Free to use
Relevant legal definitions






























Clauses






























Relevant Industries

Manufacturing

Technology and Software

Professional Services

Financial Services

Consumer Goods

Industrial Equipment

Pharmaceutical and Healthcare

Real Estate

Telecommunications

Energy and Utilities

Wholesale Distribution

Automotive

Relevant Teams

Sales

Legal

Finance

Commercial Operations

Business Development

Contract Administration

Executive Leadership

Sales Operations

Channel Management

Relevant Roles

Sales Director

Commercial Director

Business Development Manager

Sales Representative

Account Executive

Channel Manager

Regional Sales Manager

Chief Commercial Officer

Sales Operations Manager

Contract Manager

Legal Counsel

Chief Executive Officer

Finance Director

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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