The Commission Agreement Between Seller And Agent is a crucial document for businesses operating in Malaysia that wish to expand their sales reach through commission-based representatives. This agreement is commonly used when a company (the seller) wants to appoint an individual or company (the agent) to promote and sell their products or services in return for commission-based compensation. The document is structured to comply with Malaysian legal requirements, including the Contracts Act 1950 and relevant commercial regulations. It typically includes detailed provisions for commission structures, territory rights, performance expectations, and obligations of both parties. This type of agreement is particularly important in protecting both parties' interests by clearly defining the scope of authority, commission calculations, payment terms, and termination conditions. It's essential for businesses expanding their sales channels while maintaining control over their market representation and ensuring legal compliance in the Malaysian market.
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1. Parties: Identification and details of the Seller and Agent, including business registration numbers and addresses
2. Background: Context of the agreement, brief description of the Seller's business and the purpose of appointing the Agent
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Scope: Terms of the Agent's appointment and detailed scope of authorized activities
5. Territory and Exclusivity: Geographical area of operation 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, payment methods, and handling of expenses
8. Agent's Obligations: Detailed responsibilities and duties of the Agent
9. Seller's Obligations: Responsibilities and commitments of the Seller
10. Term and Termination: Duration of the agreement and conditions for termination
11. Confidentiality: Protection of confidential information and trade secrets
12. Governing Law: Specification of Malaysian law as the governing law and jurisdiction
13. General Provisions: Standard legal provisions including notices, amendments, and severability
1. Non-Competition: Restrictions on Agent's ability to represent competitors, used when protecting market position is crucial
2. Performance Targets: Specific sales or performance goals, included when minimum performance levels are required
3. Training and Support: Details of training and support provided by Seller, included for complex products or services
4. Insurance: Insurance requirements for the Agent, included when activities involve significant risks
5. Intellectual Property: Usage rights for trademarks and marketing materials, included when brand protection is important
6. Data Protection: Compliance with data protection laws, included when personal data processing is involved
7. Force Majeure: Provisions for unforeseen circumstances, included when long-term commitment is involved
8. Dispute Resolution: Alternative dispute resolution procedures, included for high-value agreements
1. Schedule 1: Commission Rates: Detailed breakdown of commission rates for different products or services
2. Schedule 2: Territory Map: Detailed map or description of the authorized territory
3. Schedule 3: Product List: List of products or services covered by the agreement
4. Schedule 4: Performance Metrics: Detailed performance evaluation criteria and targets
5. Schedule 5: Reporting Templates: Standard forms for sales reports and commission calculations
6. Appendix A: Marketing Guidelines: Guidelines for marketing and representing the Seller's products
7. Appendix B: Compliance Requirements: Specific regulatory or industry compliance requirements
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