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Commission Split Agreement Template for Malaysia

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Key Requirements PROMPT example:

Commission Split Agreement

"I need a Commission Split Agreement for my real estate agency in Kuala Lumpur, establishing a 60-40 commission split with new real estate agents, including minimum performance requirements and monthly payment terms, to be effective from March 1, 2025."

Document background
The Commission Split Agreement is essential for businesses operating in Malaysia that utilize commission-based compensation structures. This document is particularly relevant when two or more parties agree to share commission earnings from sales, services, or other business activities. It's commonly used in various industries including real estate, financial services, and sales, where commission-based compensation is standard practice. The agreement must comply with Malaysian legislation, including the Contracts Act 1950 and Employment Act 1955, while addressing specific requirements for commission calculations, payment terms, performance metrics, and tax considerations. It serves to prevent disputes by clearly defining the rights, responsibilities, and financial arrangements between parties involved in commission-sharing arrangements.
Suggested Sections

1. Parties: Identifies and provides details of all parties to the agreement

2. Background: Provides context and purpose of the agreement, including the business relationship between parties

3. Definitions: Defines key terms used throughout the agreement

4. Commission Structure: Details the basic commission split percentages and calculation methods

5. Payment Terms: Specifies payment frequency, method, and timing of commission payments

6. Obligations of Parties: Outlines the duties and responsibilities of each party

7. Term and Termination: Specifies the duration of the agreement and conditions for termination

8. Confidentiality: Protects sensitive business information shared between parties

9. Dispute Resolution: Establishes procedures for resolving disagreements

10. Governing Law: Specifies Malaysian law as governing law and jurisdiction

Optional Sections

1. Non-Compete Clause: Restricts parties from engaging in competing activities - include when protecting business interests is crucial

2. Performance Metrics: Establishes specific performance targets and related commission adjustments - include for performance-based arrangements

3. Training and Support: Outlines any training or support provided - include when one party provides operational support to the other

4. Insurance Requirements: Specifies required insurance coverage - include for high-risk or regulated industries

5. Intellectual Property Rights: Addresses ownership and usage of IP - include when branded materials or proprietary systems are involved

6. Force Majeure: Addresses unforeseen circumstances - include for long-term or high-value agreements

7. Assignment Rights: Specifies whether rights can be transferred - include when potential business transfers are anticipated

Suggested Schedules

1. Commission Rate Schedule: Detailed breakdown of commission percentages, including any tiered structures or special rates

2. Payment Calculation Examples: Sample calculations showing how commissions will be calculated in various scenarios

3. Required Documentation: List of documents required for commission claims and payment processing

4. Performance Targets: Detailed metrics and targets for performance-based commission adjustments

5. Territory Map: Geographical areas covered by the agreement, if applicable

6. Reporting Templates: Standard forms and formats for commission reporting and claims

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

Financial Services

Insurance

Retail

Automotive

Recruitment

Technology Sales

Manufacturing

Direct Sales

Professional Services

Telecommunications

Healthcare

Relevant Teams

Sales

Business Development

Legal

Human Resources

Finance

Operations

Compliance

Partner Relations

Account Management

Commission Administration

Relevant Roles

Sales Director

Business Development Manager

Commission Administrator

Sales Representative

Channel Partner Manager

Real Estate Broker

Financial Services Manager

Insurance Sales Manager

Recruitment Manager

Regional Sales Manager

Account Executive

Partnership Manager

Legal Counsel

HR Manager

Finance 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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