Commission agreement contents
The cornerstones of this commission agreement are three defined terms.
- “Trigger Event”: the event that will give rise to a payment obligation, for example the referral of a customer during the term of the agreement.
- “Base Amount”: the underlying amount that will be used in the commission calculation, for example the amount paid by a referred customer during a certain period following the referral.
- “Commission”: an amount calculated by applying a defined percentage to the Base Amount.
Because of the use of these abstract concepts, this commission agreement is highly flexible, and can be used in a wide range of different circumstances.
In addition to the core obligation to pay commission, the agreement includes a procedure whereby one party must notify the other of the amount of commission due periodically during the term of the agreement. It also includes an audit provision allowing the receiving party to review the calculations of the paying party.
Paid-for versions of this agreement
A paid-for version of this agreement is available on website-contracts.co.uk here. The only difference between this free agreement and the paid-for agreement is that the latter does not include the text that identifies the source of the document.
In addition, we publish several variations of this agreement:
- commission and confidentiality agreement
- commission and non-solicitation agreement
- commission, confidentiality and non-solicitation agreement
Alternatives to this agreement
For a document that relates specifically to customer introductions and covers the relationship between a service provider and a referral partner more generally, see our referral partner agreement.
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