The Commission Partnership Agreement is essential for businesses operating in the Philippines that wish to establish formal commission-based relationships with partners, agents, or representatives. This document is particularly relevant when a company (Principal) wants to engage another party (Commission Partner) to promote, sell, or facilitate business transactions in exchange for commission-based compensation. The agreement must comply with Philippine Civil Code requirements, particularly Title IX on Partnership and Book IV on Obligations and Contracts. It typically includes detailed provisions on commission structures, territorial rights, performance metrics, reporting requirements, and termination conditions. This type of agreement is commonly used in various industries where sales-based partnerships are prevalent, such as real estate, insurance, and retail sectors, and must incorporate specific provisions required under Philippine commercial law to ensure enforceability.
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1. Parties: Identification and details of the Principal and Commission Partner, including their legal names, addresses, and registration details
2. Background: Context of the agreement, brief description of the parties' businesses, and purpose of entering into the commission partnership
3. Definitions: Key terms used throughout the agreement, including 'Commission,' 'Products/Services,' 'Territory,' 'Customers,' etc.
4. Appointment and Scope: Terms of appointment, exclusivity/non-exclusivity, and detailed scope of the commission partnership
5. Commission Structure: Detailed breakdown of commission rates, calculation methods, and payment terms
6. Rights and Obligations: Specific duties and responsibilities of both the Principal and Commission Partner
7. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination
8. Reporting and Payment: Requirements for sales reporting, commission calculations, and payment procedures
9. Confidentiality: Protection of confidential information and trade secrets
10. Non-Competition: Restrictions on competing activities during and after the agreement
11. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for dispute resolution
12. General Provisions: Standard clauses including force majeure, entire agreement, amendments, and notices
1. Intellectual Property Rights: Used when the partnership involves use of trademarks, patents, or other IP rights
2. Training and Support: Include when the Principal provides specific training or support services to the Commission Partner
3. Marketing and Promotion: Required when the agreement includes specific marketing obligations or restrictions
4. Insurance Requirements: Include when specific insurance coverage is required for the Commission Partner
5. Data Protection: Required when the partnership involves handling personal or sensitive data
6. Performance Targets: Include when the agreement includes specific sales targets or performance metrics
7. Indemnification: Optional but recommended when there are specific risk allocation requirements
1. Commission Rate Schedule: Detailed breakdown of commission rates for different products/services or customer categories
2. Territory Description: Detailed description of the geographical area or market segment covered by the agreement
3. Product/Service List: Comprehensive list of products or services covered under the commission partnership
4. Reporting Templates: Standard formats for sales reports and commission calculations
5. Performance Metrics: Detailed KPIs and measurement criteria if performance targets are included
6. Standard Operating Procedures: Specific procedures for order processing, customer handling, and other operational matters
Relevant legal definitions
Clauses
Relevant Industries
Retail
Real Estate
Financial Services
Insurance
Technology
Manufacturing
Consumer Goods
Professional Services
Telecommunications
Healthcare
Travel and Tourism
Relevant Teams
Legal
Sales
Business Development
Compliance
Finance
Operations
Commercial
Partner Relations
Contract Administration
Relevant Roles
Business Development Manager
Sales Director
Commercial Director
Legal Counsel
Compliance Officer
Partnership Manager
Channel Sales Manager
Chief Commercial Officer
Sales Operations Manager
Contract Administrator
Agency Relations Manager
Regional Sales Manager
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