The Commission Agent Agreement is essential for businesses operating in England and Wales that wish to expand their sales reach through commission-based representatives. This agreement defines the commercial relationship between principals and their agents, establishing clear terms for territory rights, commission structures, and mutual obligations. It must comply with the Commercial Agents (Council Directive) Regulations 1993 and provides necessary legal protection for both parties. The document is particularly crucial when engaging independent sales representatives who will act on behalf of the principal while maintaining their independent contractor status.
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1. Parties: Identification and details of the principal and agent
2. Background: Context and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Appointment and Territory: Scope of agent's appointment and geographical territory
5. Agent's Duties and Obligations: Core responsibilities and performance standards
6. Principal's Duties and Obligations: Support, information, and materials to be provided
7. Commission Structure: Calculation and payment terms for commission
8. Term and Termination: Duration and termination provisions including notice periods and compensation/indemnity
9. Governing Law and Jurisdiction: Applicable law and dispute resolution mechanisms
1. Non-Compete Provisions: Restrictions on competitive activities during and after the agreement term
2. Intellectual Property: Rights and permissions regarding use of trademarks, logos, and other IP
3. Data Protection: Compliance with UK GDPR and data handling requirements
4. Insurance Requirements: Mandatory insurance coverage and minimum limits
1. Territory Schedule: Detailed description of geographical territory and any exclusions
2. Commission Schedule: Detailed commission calculations, rates, and payment examples
3. Products/Services Schedule: Comprehensive list of products/services covered by the agreement
4. Performance Targets: Specific KPIs, sales targets, and measurement criteria
5. Reporting Templates: Standard forms for activity reports, sales reports, and other required documentation
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