This Commission Contract Agreement is essential for businesses operating in Germany that wish to engage sales agents or representatives on a commission basis. The document is structured in accordance with German law, particularly the German Commercial Code (HGB) and Civil Code (BGB), and includes crucial provisions for commission calculations, territory definitions, performance standards, and compliance requirements. It's particularly relevant for companies expanding their sales channels through external agents or establishing performance-based compensation structures. The agreement addresses key aspects such as commission rates, payment terms, reporting requirements, and territorial rights, while ensuring compliance with German commercial law and EU regulations, including GDPR.
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1. Parties: Identification of the principal and commission agent, including full legal names, registration details, and addresses
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Scope: Formal appointment of the commission agent and scope of authority
5. Territory and Exclusivity: Definition of geographical area and whether the appointment is exclusive
6. Commission Structure: Detailed explanation of commission rates, calculation methods, and payment terms
7. Rights and Obligations of the Agent: Detailed responsibilities, performance standards, and reporting requirements
8. Rights and Obligations of the Principal: Principal's commitments, support provisions, and information obligations
9. Accounting and Payment: Procedures for commission calculations, invoicing, and payment terms
10. Confidentiality: Provisions for handling confidential information and trade secrets
11. Data Protection: GDPR compliance and data handling requirements
12. Term and Termination: Duration of agreement and termination provisions
13. Post-Termination Obligations: Obligations and restrictions after contract termination
14. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction
15. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, and amendments
1. Non-Compete Clause: Restrictions on competitive activities during and after the agreement (include when dealing with sensitive markets or products)
2. Minimum Performance Requirements: Specific sales targets or performance metrics (include when performance benchmarks are crucial)
3. Training and Support: Details of training and support provided by principal (include for complex products or services)
4. Insurance Requirements: Specific insurance obligations (include when agent handles valuable goods or significant transactions)
5. Intellectual Property Rights: IP usage and protection provisions (include when branded products or materials are involved)
6. Sub-Agents: Provisions regarding the appointment of sub-agents (include when sub-contracting might be necessary)
7. Force Majeure: Provisions for unforeseen circumstances (include for long-term or international agreements)
1. Schedule 1: Commission Rates: Detailed breakdown of commission rates for different products or services
2. Schedule 2: Territory Definition: Detailed description of geographical territory including maps or postal codes
3. Schedule 3: Products and Services: Comprehensive list of products or services covered by the agreement
4. Schedule 4: Reporting Templates: Standard forms for activity reports and commission calculations
5. Schedule 5: Performance Metrics: Detailed performance indicators and evaluation criteria
6. Appendix A: Code of Conduct: Guidelines for business conduct and ethical standards
7. Appendix B: Data Processing Agreement: GDPR-compliant data processing terms and conditions
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