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Business Development Commission Agreement

Business Development Commission Agreement Template for England and Wales

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Key Requirements PROMPT example:

Business Development Commission Agreement

"I need a Business Development Commission Agreement for my software company to engage an experienced business developer to expand our market in Northern England, with a tiered commission structure starting at 5% for new clients and increasing based on contract value, starting from March 2025."

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Document background
The Business Development Commission Agreement is essential for companies looking to expand their business through third-party business developers or agents. This agreement, governed by English and Welsh law, provides a comprehensive framework for commission-based business development relationships, defining the terms of engagement, compensation structure, and performance expectations. It's particularly valuable when companies want to incentivize business growth through commission-based arrangements while maintaining clear legal boundaries and protections for all parties involved.
Suggested Sections

1. 1. Parties: Identification and details of the contracting parties

2. 2. Background: Context and purpose of the agreement

3. 3. Definitions: Key terms used throughout the agreement

4. 4. Appointment and Scope: Terms of appointment and services to be provided

5. 5. Commission Structure: Calculation and payment terms for commission

6. 6. Obligations of the Parties: Duties and responsibilities of each party

7. 7. Term and Termination: Duration and termination provisions

8. 8. Confidentiality: Protection of confidential information

9. 9. Governing Law: Applicable law and jurisdiction

Optional Sections

1. Non-Compete: Restrictions on competitive activities - include when protecting business interests from competition

2. Intellectual Property: IP ownership and usage rights - include when IP is created or shared during business development

3. Force Majeure: Provisions for unforeseen circumstances - include when long-term commitments are involved

4. Data Protection: GDPR compliance provisions - include when personal data is processed

Suggested Schedules

1. Schedule 1 - Commission Rates: Detailed breakdown of commission structures and calculations

2. Schedule 2 - Territory: Definition of geographical areas covered by the agreement

3. Schedule 3 - Products/Services: List of products/services covered by the agreement

4. Schedule 4 - Reporting Template: Standard format for activity and commission reports

5. Schedule 5 - KPIs: Performance metrics and targets

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 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

























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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Commercial Agents (Council Directive) Regulations 1993: Primary legislation governing the relationship between commercial agents and their principals, including rights, duties, and commission arrangements

Companies Act 2006: Core company legislation that provides the framework for business operations and corporate relationships in the UK

Contract Law (English Common Law): Fundamental principles of contract formation, performance, and enforcement under English law

Law of Property (Miscellaneous Provisions) Act 1989: Legislation governing formal requirements for certain types of contracts and property transactions

Employment Rights Act 1996: Legislation to ensure clear distinction between commission agents and employees, avoiding misclassification issues

Agency Workers Regulations 2010: Regulations governing the rights of agency workers and their relationship with hiring companies

Late Payment of Commercial Debts (Interest) Act 1998: Legislation governing interest on late payments in commercial transactions, including commission payments

Financial Services and Markets Act 2000: Regulatory framework for financial services activities and related commission arrangements

UK GDPR: Data protection regulations governing the processing and handling of personal data in business relationships

Data Protection Act 2018: UK's implementation of data protection standards, complementing UK GDPR

Bribery Act 2010: Anti-corruption legislation affecting business relationships and commission structures

Competition Act 1998: Legislation governing fair competition and preventing anti-competitive practices in business relationships

Enterprise Act 2002: Framework for business competition and market regulation affecting commercial relationships

Value Added Tax Act 1994: Tax legislation relevant to commission payments and business transactions

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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