Document background
The Sales Commission Agreement serves as a crucial legal instrument in Malaysian business relationships where sales are conducted through commission-based representatives or agents. This document is essential when companies wish to engage sales professionals on a commission basis, whether as independent contractors or commission-based employees. It provides a clear framework for commission calculations, payment terms, performance expectations, and territorial rights while ensuring compliance with Malaysian contract law, employment regulations, and tax requirements. The agreement is particularly important for protecting both parties' interests, establishing clear performance metrics, and preventing future disputes regarding commission payments or territorial rights. Use this agreement when establishing new sales relationships or formalizing existing commission-based arrangements in Malaysia.
