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Commission Split Agreement Template for India

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Key Requirements PROMPT example:

Commission Split Agreement

"I need a Commission Split Agreement for my real estate agency in Mumbai, where we want to establish a 60-40 commission split with our senior agents, including quarterly performance bonuses and territory restrictions for South Mumbai."

Document background
The Commission Split Agreement serves as a critical document for businesses operating in India where revenue sharing through commissions is a key component of their business model. This agreement is essential when two or more parties collaborate in generating business and need to formalize how the resulting commissions will be shared. The document addresses key aspects required under Indian law, including commission calculations, payment schedules, tax implications (particularly TDS and GST), and compliance requirements. It's particularly relevant for sectors like real estate, insurance, and financial services where commission-based business models are common. The agreement helps prevent disputes by clearly documenting the terms of commission sharing, performance expectations, and each party's rights and obligations.
Suggested Sections

1. Parties: Identification and details of all parties involved in the commission split arrangement

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

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

4. Scope of Agreement: Details of the business activities covered under the commission split arrangement

5. Commission Structure: Clear explanation of how commissions are calculated and split between parties

6. Payment Terms: Timeline and method of commission payments, including currency and payment mechanics

7. Obligations of Parties: Specific duties and responsibilities of each party under the agreement

8. Term and Termination: Duration of the agreement and conditions for termination

9. Confidentiality: Protection of confidential information shared between parties

10. Non-Compete and Non-Solicitation: Restrictions on competitive activities and client solicitation

11. Dispute Resolution: Process for resolving disputes between parties

12. Governing Law: Specification of Indian law as governing law and jurisdiction

13. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Intellectual Property Rights: Required when the commission arrangement involves use of trademarks, patents, or other IP

2. Training and Support: Include when one party needs to provide training or ongoing support to the other

3. Performance Metrics: Include when commission splits are tied to specific performance targets or KPIs

4. Territory Restrictions: Required when the agreement is limited to specific geographic areas

5. Marketing and Promotion: Include when parties have specific marketing obligations or restrictions

6. Compliance Requirements: Include for regulated industries or when specific compliance obligations exist

7. Force Majeure: Optional clause for handling unforeseen circumstances affecting performance

8. Insurance Requirements: Include when specific insurance coverage is required from either party

Suggested Schedules

1. Schedule A - Commission Rates: Detailed breakdown of commission percentages and calculation methods

2. Schedule B - Products/Services: List of products or services covered under the commission arrangement

3. Schedule C - Territory Map: Geographical areas covered by the agreement, if applicable

4. Schedule D - Performance Targets: Specific sales or performance targets affecting commission rates

5. Schedule E - Payment Procedures: Detailed procedures for commission calculations and payments

6. Appendix 1 - Reporting Templates: Standard formats for sales and commission reports

7. Appendix 2 - Compliance Checklist: List of compliance requirements and documentation needed

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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Relevant Industries

Real Estate

Insurance

Financial Services

Retail

E-commerce

Technology

Telecommunications

Manufacturing

Professional Services

Travel and Tourism

Automotive

Healthcare

Advertising and Media

Construction

Relevant Teams

Sales

Legal

Finance

Compliance

Business Development

Partner Relations

Revenue Operations

Channel Management

Distribution

Commercial Operations

Relevant Roles

Sales Director

Business Development Manager

Channel Partner Manager

Commission Administrator

Financial Controller

Legal Counsel

Compliance Officer

Sales Operations Manager

Account Executive

Partnership Manager

Revenue Manager

Agency Relations Manager

Broker Relations Manager

Sales Agent

Distribution Manager

Industries







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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