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Commission Agreement Between Seller And Agent for Malaysia

Commission Agreement Between Seller And Agent Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes and regulates the relationship between a seller (principal) and an agent for the purpose of selling products or services on a commission basis. The document outlines the terms of appointment, territory rights, commission structure, payment terms, obligations of both parties, and termination conditions. It ensures compliance with Malaysian commercial and agency laws while protecting both parties' interests in the commission-based business relationship. The agreement includes specific provisions for commission calculations, performance expectations, and reporting requirements in accordance with local business practices and legal requirements.

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Commission Agreement Between Seller And Agent

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What is a Commission Agreement Between Seller And Agent?

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.

What sections should be included in a Commission Agreement Between Seller And Agent?

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

What sections are optional to include in a Commission Agreement Between Seller And Agent?

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

What schedules should be included in a Commission Agreement Between Seller And Agent?

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

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

Malaysia

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions

























Clauses




























Relevant Industries

Retail

Real Estate

Insurance

Financial Services

Manufacturing

Technology

Consumer Goods

Telecommunications

Automotive

Industrial Equipment

Pharmaceuticals

Travel and Tourism

Professional Services

Construction Materials

Electronics

Relevant Teams

Sales

Legal

Commercial

Finance

Compliance

Business Development

Operations

Contract Administration

Account Management

Executive Leadership

Relevant Roles

Sales Director

Commercial Manager

Business Development Manager

Sales Agent

Channel Manager

Legal Counsel

Contracts Manager

Chief Commercial Officer

Sales Operations Manager

Account Manager

Regional Sales Manager

Commission Administrator

Compliance Officer

Chief Executive Officer

Finance Manager

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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