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Agent Commission Sharing Agreement Template for Malaysia

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Key Requirements PROMPT example:

Agent Commission Sharing Agreement

"I need an Agent Commission Sharing Agreement for a real estate brokerage in Kuala Lumpur, where a master agent will share 30% of their commission with two sub-agents for property sales above RM 2 million, starting March 2025."

Document background
The Agent Commission Sharing Agreement is essential in business arrangements where multiple parties collaborate in sales or service delivery and need to share resulting commissions. This document is particularly relevant in Malaysia's growing service and agency-based industries, where complex distribution networks and multi-tiered agency relationships are common. The agreement complies with Malaysian commercial law, including the Contracts Act 1950 and relevant financial regulations, making it suitable for both domestic and international business arrangements. It is commonly used when master agents work with sub-agents, when multiple brokers collaborate on deals, or when agencies need to structure commission sharing with their representatives. The document includes detailed provisions for commission calculations, payment mechanisms, party obligations, and dispute resolution, all aligned with Malaysian legal requirements and business practices.
Suggested Sections

1. Parties: Identification of all parties involved in the commission sharing arrangement

2. Background: Context of the agreement and existing relationships between parties

3. Definitions: Key terms used throughout the agreement including Commission, Territory, Products/Services, etc.

4. Appointment and Scope: Terms of appointment and scope of the commission sharing arrangement

5. Commission Structure: Details of how commissions will be calculated and shared between parties

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

7. Parties' Obligations: Key responsibilities and obligations of each party

8. Records and Reporting: Requirements for maintaining commission records and reporting obligations

9. Confidentiality: Protection of confidential information shared between parties

10. Term and Termination: Duration of the agreement and circumstances for termination

11. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction

Optional Sections

1. Non-Compete: Restrictions on working with competitors, used when parties want to protect their business interests

2. Intellectual Property: IP rights and usage terms, included when branded products or proprietary systems are involved

3. Force Majeure: Provisions for unforeseen circumstances, recommended for longer-term arrangements

4. Insurance: Insurance requirements, included when significant financial risks are involved

5. Data Protection: Compliance with data protection laws, necessary when personal data is processed

6. Anti-Corruption: Anti-bribery and corruption provisions, important for regulated industries

7. Assignment: Rights to assign the agreement, included when parties want to restrict or permit transfer of rights

Suggested Schedules

1. Commission Rates Schedule: Detailed breakdown of commission rates for different products/services

2. Territory Definition: Specific geographical areas or market segments covered by the agreement

3. Products and Services: List of products/services covered by the commission sharing arrangement

4. Commission Calculation Examples: Practical examples showing how commissions are calculated in different scenarios

5. Reporting Templates: Standard formats for commission reports and reconciliation statements

6. Key Performance Indicators: Metrics used to measure performance and determine any performance-based commission adjustments

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






























Clauses






























Relevant Industries

Real Estate

Insurance

Financial Services

Manufacturing

Retail Distribution

Technology Services

Telecommunications

Import/Export

Professional Services

Tourism and Hospitality

Relevant Teams

Sales

Legal

Finance

Compliance

Operations

Business Development

Commercial

Partner Relations

Agency Management

Commission Administration

Relevant Roles

Sales Director

Business Development Manager

Agency Manager

Commission Administrator

Compliance Officer

Legal Counsel

Finance Manager

Sales Agent

Channel Partner Manager

Regional Sales Manager

Operations Director

Commercial Director

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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