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Split Commission Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Split Commission Agreement

"I need a Split Commission Agreement under Saudi law for a real estate brokerage arrangement where two agencies will collaborate and share commissions 60-40 on property sales above 5 million SAR, with the agreement starting from March 1, 2025."

Document background
The Split Commission Agreement is utilized when two or more parties agree to collaborate in business activities and share the resulting commission income. This document is particularly relevant in the Saudi Arabian market where business relationships often involve intermediaries and agents working together. The agreement must comply with Saudi Arabian commercial laws, including the Commercial Agencies Law and Sharia principles, which govern business transactions in the Kingdom. It typically includes detailed provisions for commission calculations, payment terms, reporting requirements, and parties' obligations, while ensuring transparency and fairness in the commission-sharing arrangement. The document is essential for establishing clear financial terms and preventing potential disputes in commission-based business relationships.
Suggested Sections

1. Parties: Identification of all parties involved in the commission splitting arrangement

2. Background: Context of the agreement and business relationship between the parties

3. Definitions: Key terms used throughout the agreement, including 'Commission', 'Gross Revenue', 'Territory', etc.

4. Commission Structure: Detailed breakdown of how commissions will be split between parties, including percentages and calculation methods

5. Payment Terms: Timing, method, and currency of commission payments, including any minimum thresholds

6. Reporting and Documentation: Requirements for sales reporting, commission calculations, and supporting documentation

7. Obligations of the Parties: Specific duties and responsibilities of each party in relation to generating and sharing commissions

8. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

9. Confidentiality: Protection of confidential information shared between parties

10. Governing Law and Jurisdiction: Specification of Saudi law as governing law and relevant jurisdiction for disputes

Optional Sections

1. Non-Compete: Restrictions on parties engaging in competing activities, used when parties operate in the same market

2. Territory Exclusivity: Geographic or customer segment restrictions, included when parties need to define specific operational boundaries

3. Marketing and Promotion: Guidelines for joint marketing efforts, included when parties collaborate on business development

4. Force Majeure: Provisions for unforeseeable circumstances, particularly relevant in cross-border arrangements

5. Insurance Requirements: Mandatory insurance coverage, included when dealing with high-value transactions or regulated industries

6. Audit Rights: Right to audit commission calculations and relevant records, used in complex or high-value arrangements

Suggested Schedules

1. Commission Calculation Schedule: Detailed methodology for calculating commission splits, including examples

2. Territory Definition: Specific definition of geographic areas or market segments covered by the agreement

3. Product/Service Schedule: List of products or services subject to commission splitting

4. Reporting Template: Standard format for periodic commission reports and calculations

5. Bank Account Details: Banking information for commission payments

6. Authorized Representatives: List of designated contacts for each party responsible for commission-related matters

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

Relevant legal definitions






























Clauses


































Relevant Industries

Real Estate

Insurance

Financial Services

Professional Services

Technology

Manufacturing

Construction

Import/Export

Retail

Energy

Healthcare

Telecommunications

Consulting

Relevant Teams

Sales

Business Development

Legal

Compliance

Finance

Commercial Operations

Partnerships

Contract Administration

Revenue Operations

Account Management

Relevant Roles

Sales Director

Business Development Manager

Commercial Director

Regional Sales Manager

Channel Partner Manager

Commission Operations Manager

Legal Counsel

Compliance Officer

Financial Controller

Account Executive

Partnership Manager

Chief Commercial Officer

Sales Operations Manager

Contract Administrator

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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