The Sales Commission Agreement is essential for businesses in Singapore engaging sales representatives on a commission basis. It provides a legal framework for commission-based compensation, defining sales territories, targets, and performance metrics. This document is crucial for compliance with Singapore's regulatory requirements, including the Employment Act and PDPA. The agreement typically covers commission calculations, payment terms, performance expectations, and termination conditions, while protecting both parties' interests in the sales relationship.
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1. Parties: Identifies the contracting parties and their details
2. Background: Sets out context and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Appointment: Establishes the sales representative's role and territory
5. Commission Structure: Details commission rates, calculation methods, and payment terms
6. Obligations: Lists duties and responsibilities of both parties
7. Term and Termination: Specifies duration and termination conditions
8. Governing Law: Establishes Singapore law as governing law
1. Non-Compete: Restricts competitive activities - include when protecting market position is crucial
2. Intellectual Property: Protects company IP and brand usage - include when sales involve branded products or proprietary information
3. Data Protection: Addresses PDPA compliance - include when personal data handling is involved
4. Force Majeure: Addresses unforeseen circumstances - include when long-term relationship is contemplated
1. Commission Rates Schedule: Detailed breakdown of commission rates and tiers
2. Territory Schedule: Detailed description of assigned sales territory
3. Product Schedule: List of products/services covered by the agreement
4. Performance Targets: Specific sales targets and evaluation metrics
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