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Commission Agreement For Sale Of Goods for the United Kingdom

Commission Agreement For Sale Of Goods Template for England and Wales

A Commission Agreement for Sale of Goods is a legally binding contract under English and Welsh law that establishes the terms under which an agent will sell goods on behalf of a principal. The agreement details commission structures, territorial rights, performance expectations, and the obligations of both parties. It incorporates key provisions from the Commercial Agents Regulations 1993 and the Sale of Goods Act 1979, providing protection for both principal and agent while ensuring clarity in their commercial relationship.

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Commission Agreement For Sale Of Goods

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What is a Commission Agreement For Sale Of Goods?

The Commission Agreement for Sale of Goods is essential when businesses wish to expand their sales reach through third-party agents rather than direct employees. This document is particularly relevant under English and Welsh law when companies need to establish clear terms for commission-based sales relationships. It defines the scope of authority, commission structures, territorial rights, and mutual obligations. The agreement ensures compliance with the Commercial Agents Regulations 1993 and provides protection for both parties while maintaining flexibility in commercial arrangements.

What sections should be included in a Commission Agreement For Sale Of Goods?

1. Parties: Identification and details of the principal and agent

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

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of agent appointment and territory/product scope

5. Commission Structure: Calculation and payment terms for commission

6. Obligations of the Agent: Agent's duties and responsibilities

7. Obligations of the Principal: Principal's duties and responsibilities

8. Term and Termination: Duration and termination provisions

What sections are optional to include in a Commission Agreement For Sale Of Goods?

1. Non-Compete Provisions: Restrictions on agent's activities, use when exclusivity is required

2. Performance Targets: Specific sales targets, use when performance metrics are needed

3. Training and Support: Principal's support obligations, use for complex products

4. International Sales: Additional provisions for cross-border sales

What schedules should be included in a Commission Agreement For Sale Of Goods?

1. Products Schedule: List of products covered by the agreement

2. Commission Rates: Detailed commission structure and calculations

3. Territory Definition: Detailed description of geographical coverage

4. Reporting Templates: Standard forms for sales reporting

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

Jurisdiction

England and Wales

Publisher

Ƶ

Sector

Sales

Cost

Free to use
Relevant legal definitions






























Clauses



































Industries

Sale of Goods Act 1979: Primary legislation governing sales contracts, defining fundamental rights and obligations including terms about quality, fitness for purpose, and transfer of title in goods sales transactions

Commercial Agents (Council Directive) Regulations 1993: Regulations governing the relationship between principals and commercial agents, including rights to commission, termination provisions, and compensation arrangements

Supply of Goods and Services Act 1982: Legislation covering the service aspects of commission arrangements, ensuring quality standards and implied terms in service provision

Consumer Rights Act 2015: Legislation relevant when the ultimate sale involves consumers, providing consumer protection and defining business obligations in consumer transactions

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce terms of a contract, relevant for commission structures involving multiple parties

Unfair Contract Terms Act 1977: Controls the use of exclusion and limitation clauses in contracts, ensuring fairness in commercial relationships

Late Payment of Commercial Debts (Interest) Act 1998: Legislation providing for interest on late payments in commercial transactions, relevant for commission payment terms

Common Law Contract Formation Principles: Fundamental legal principles governing offer, acceptance, consideration, and intention to create legal relations

Agency Law Principles: Common law principles governing the relationship between principal and agent, including authority and duties

Fiduciary Duties: Legal obligations of trust and loyalty owed by agents to their principals under common law

Law of Misrepresentation: Legal principles governing false statements or misrepresentations made during contract formation

Retained EU Commercial Law: Post-Brexit retained EU law principles affecting commercial agency relationships and cross-border trade

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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