Business Commission Agreement

Business Commission Agreement Template for Germany

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Key Requirements PROMPT example:

"I need a Business Commission Agreement for appointing a sales agent in Germany to sell our software products, with a 15% commission rate and quarterly performance reviews, starting March 1, 2025."

Document background

The Business Commission Agreement is a crucial document for establishing formal commission-based business relationships in Germany. It is typically used when a company (Principal) wants to engage an agent or intermediary (Commission Agent) to conduct business transactions on its behalf in return for commission-based compensation. The agreement must comply with the German Commercial Code (HGB), particularly sections 383-406 regarding commission business. This document is essential for businesses expanding their sales channels, entering new markets, or establishing distribution networks. It includes detailed provisions on commission calculations, payment terms, reporting requirements, and compliance with German commercial law. The agreement is particularly relevant for both domestic German operations and international companies operating in the German market, ensuring clear guidelines for commission-based business relationships while maintaining legal compliance.

Suggested Sections

1. Parties: Identification and details of the Principal and Commission Agent, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Scope: Formal appointment of the commission agent and detailed scope of services

5. Commission Agent's Rights and Obligations: Detailed responsibilities, including transaction execution, reporting, and compliance requirements

6. Principal's Rights and Obligations: Principal's responsibilities, including information provision and payment obligations

7. Commission Structure: Detailed commission calculation, payment terms, and conditions

8. Accounting and Payment: Procedures for accounting, invoicing, and payment processing

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Term and Termination: Duration of agreement and termination provisions as per HGB requirements

11. Post-Termination Obligations: Obligations surviving termination and wrap-up procedures

12. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction

Optional Sections

1. Non-Compete Clause: Restrictions on competitive activities, used when protecting market position is crucial

2. Data Protection: GDPR compliance provisions, required when personal data processing is involved

3. Insurance Requirements: Specific insurance obligations, relevant for high-value transactions

4. Force Majeure: Provisions for unforeseen circumstances, important for long-term agreements

5. Compliance with Laws: Specific regulatory compliance requirements, needed for regulated industries

6. Assignment and Subcontracting: Rights to transfer obligations, important when flexibility is needed

7. Marketing and Branding: Guidelines for using Principal's branding, relevant for customer-facing activities

Suggested Schedules

1. Commission Rates Schedule: Detailed breakdown of commission rates for different products or services

2. Product List: List of products or services covered by the agreement

3. Territory Definition: Detailed description of geographical areas covered

4. Reporting Templates: Standard forms for regular reporting requirements

5. Service Level Agreement: Detailed performance metrics and standards

6. Compliance Procedures: Specific procedures for regulatory compliance

7. Authorization Matrix: Levels of authority for different types of transactions

Authors

Alex Denne

Head of Growth (Open Source Law) @ ��Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Retail

Financial Services

Real Estate

Insurance

Manufacturing

Technology

Professional Services

Wholesale Trade

Import/Export

Automotive

Consumer Goods

Industrial Equipment

Relevant Teams

Legal

Sales

Finance

Compliance

Business Development

Commercial Operations

Partner Management

Contract Administration

Risk Management

Relevant Roles

Sales Director

Commercial Director

Business Development Manager

Legal Counsel

Compliance Officer

Finance Manager

Sales Operations Manager

Channel Manager

Agency Manager

Contract Administrator

Chief Commercial Officer

Regional Sales Manager

Partnership Manager

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