The Commission Agreement serves as a fundamental document for establishing commission-based business relationships in Indonesia, commonly used across various industries where sales and business development activities are outsourced or delegated to agents. This agreement type is essential for companies operating in Indonesia who wish to engage sales representatives, agents, or intermediaries on a commission basis. The document must comply with Indonesian law, particularly the Civil Code (KUH Perdata) and relevant commercial regulations, while clearly defining commission structures, payment terms, performance metrics, and territorial rights. It's particularly important in the Indonesian market where relationship-based business practices are common and require clear documentation of commercial arrangements.
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1. Parties: Identification of the principal and the commission agent, including their complete legal names, addresses, and company registration details
2. Background: Context of the agreement, nature of the principal's business, and purpose of the commission arrangement
3. Definitions: Definitions of key terms used throughout the agreement, including 'Commission', 'Territory', 'Products/Services', and 'Customers'
4. Appointment and Scope: Terms of appointment, exclusivity/non-exclusivity, and detailed scope of services to be provided by the commission agent
5. Commission Structure: Detailed explanation of commission rates, calculation methods, and qualifying transactions
6. Payment Terms: Commission payment schedule, payment method, currency, and any conditions precedent to payment
7. Obligations of the Agent: Key responsibilities, performance standards, and compliance requirements for the commission agent
8. Obligations of the Principal: Principal's duties, including provision of information, support, and materials to the agent
9. Reporting and Records: Requirements for sales reporting, record-keeping, and audit rights
10. Term and Termination: Duration of the agreement, renewal provisions, and grounds for termination
11. Confidentiality: Protection of confidential information and trade secrets
12. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanisms
1. Non-Compete: Restrictions on agent's ability to represent competing products/services, used when protecting market position is crucial
2. Intellectual Property: Protection and usage rights of trademarks and other IP, included when agent will be using principal's branded materials
3. Training and Support: Details of training and support provided by principal, included for complex products/services
4. Insurance: Insurance requirements for the agent, included when activities involve significant risks
5. Data Protection: Compliance with data protection laws, included when personal data processing is involved
6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in volatile markets
7. Anti-Corruption: Compliance with anti-corruption laws, important for international transactions
8. Territory Restrictions: Geographical limitations on agent's activities, used in territory-specific arrangements
1. Commission Rates Schedule: Detailed breakdown of commission rates for different products/services or customer categories
2. Product/Service Description: Comprehensive list and description of products/services covered by the agreement
3. Territory Definition: Detailed description or map of the geographical territory covered
4. Performance Targets: Specific sales targets or KPIs for the agent
5. Reporting Templates: Standard forms for sales reporting and commission calculations
6. Approved Marketing Materials: List of approved marketing materials and usage guidelines
7. Customer Categories: Classification of customer types and applicable commission structures
Relevant legal definitions
Clauses
Relevant Industries
Retail
Real Estate
Insurance
Financial Services
Manufacturing
Technology
Telecommunications
Pharmaceuticals
Consumer Goods
Automotive
Travel and Tourism
Export/Import
Professional Services
Industrial Equipment
Relevant Teams
Sales
Legal
Finance
Compliance
Business Development
Commercial Operations
Contract Administration
Agency Relations
Revenue Operations
Partner Management
Relevant Roles
Sales Director
Business Development Manager
Commercial Director
Sales Representative
Channel Manager
Regional Sales Manager
Commission Agent
Chief Commercial Officer
Legal Counsel
Compliance Officer
Finance Manager
Contract Administrator
Business Development Director
Agency Relations Manager
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