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The Commission Agreement Between Seller And Agent is essential for businesses operating in the Philippines that rely on external sales representatives or agents to market and sell their products or services. This document type is particularly relevant in the Philippine business context, where agency relationships are governed by both the Civil Code and Commercial Code. The agreement typically defines the scope of the agent's authority, commission structures, territorial rights, and performance expectations while ensuring compliance with local regulations. It's commonly used when companies want to expand their sales reach without directly employing sales staff, providing a clear framework for commission-based compensation and protecting both parties' interests through well-defined terms and conditions. The document must comply with Philippine agency laws, tax regulations, and fair trade practices, making it crucial to include specific provisions required by local jurisdiction.

1. Parties: Identifies and provides full details of the Seller (Principal) and Agent, including their legal names, addresses, and business registration details

2. Background: Explains the context of the agreement, including the Seller's business nature and desire to appoint an agent

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Appointment and Scope: Specifies the agent's appointment, whether exclusive or non-exclusive, and defines the territorial scope

5. Agent's Rights and Obligations: Details the agent's responsibilities, including sales targets, reporting requirements, and professional conduct standards

6. Seller's Rights and Obligations: Outlines the seller's commitments, including providing necessary information, materials, and support

7. Commission Structure: Details the commission rates, calculation methods, and payment terms

8. Payment Terms: Specifies payment frequency, method, currency, and handling of expenses

9. Term and Termination: States the agreement duration, renewal terms, and grounds for termination

10. Confidentiality: Establishes obligations regarding confidential information protection

11. Intellectual Property: Addresses the use of trademarks, logos, and other IP owned by the Seller

12. Governing Law and Jurisdiction: Specifies Philippine law as governing law and defines jurisdiction for dispute resolution

13. General Provisions: Includes standard clauses like entire agreement, amendments, and severability