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Commission Agreement Between Two Companies Template for England and Wales

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Key Requirements PROMPT example:

Commission Agreement Between Two Companies

"I need a Commission Agreement Between Two Companies for my software development firm to act as a reseller of enterprise software products, with a 15% commission rate and exclusive rights in the UK market, starting from March 2025."

Document background
Commission Agreement Between Two Companies are commonly used when businesses want to establish formal arrangements for commission-based services. These agreements, governed by English and Welsh law, are essential for clearly defining the commercial relationship, commission structures, and mutual obligations between the parties. They are particularly valuable in situations where one company generates business or sales for another, requiring detailed documentation of commission calculations, payment terms, and performance expectations. The agreement helps prevent disputes by clearly outlining rights and responsibilities while ensuring compliance with UK commercial law.
Suggested Sections

1. Parties: Identification of the contracting parties with full legal names and registered addresses

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

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of appointment and scope of services

5. Commission Structure: Details of commission rates, calculation methods, and payment terms

6. Payment Terms: Timeline and method of commission payments

7. Duration and Termination: Contract period and termination provisions

8. Obligations of Parties: Responsibilities and duties of each party

9. Governing Law: Specification of applicable law and jurisdiction

Optional Sections

1. Territory Restrictions: Geographic limitations of the agreement - use when services are limited to specific regions

2. Non-Compete Provisions: Restrictions on competitive activities - use when protecting business interests from competition

3. Performance Targets: Specific goals or metrics - use when commission is linked to performance

4. Training and Support: Details of training provided - use when specific training is required

Suggested Schedules

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

2. Territory Schedule: Detailed description of geographical territories if applicable

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

4. Performance Metrics Schedule: Detailed performance targets and measurement criteria

Authors

Alex Denne

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

Relevant legal definitions






























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Industries

Commercial Agents (Council Directive) Regulations 1993: Key legislation governing commercial agency relationships, including rights, obligations, and termination provisions. Essential for commission-based arrangements between companies.

Supply of Goods and Services Act 1982: Regulates the quality and standards of services, implying terms about reasonable care and skill in service provision.

Companies Act 2006: Fundamental legislation ensuring parties have proper authority to enter into agreements and verification of company details and status.

Contract Law Principles: Common law principles governing contract formation including offer, acceptance, consideration, and intention to create legal relations.

Bribery Act 2010: Anti-corruption legislation relevant to commission arrangements, including provisions on corporate hospitality and prevention of bribery.

Competition Act 1998: Ensures the agreement complies with competition law, particularly regarding territorial limitations and market restrictions.

Data Protection Act 2018 and UK GDPR: Legislation governing the processing and protection of personal data that may be handled under the agreement.

Limitation Act 1980: Sets statutory time limits for bringing legal claims related to the agreement.

Late Payment of Commercial Debts (Interest) Act 1998: Governs payment terms and statutory interest on late commercial payments.

Value Added Tax Act 1994: Determines VAT implications and requirements for commission payments and related 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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