Commission Based Contract Template for Australia

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Key Requirements PROMPT example:

Commission Based Contract

"I need a Commission Based Contract for my real estate agency in Melbourne, starting January 2025, with a simple 5% commission structure for residential property sales and additional provisions for exclusive listing rights."

Document background
The Commission Based Contract serves as a foundational document for establishing commission-based commercial relationships in Australia. It is specifically designed for situations where businesses engage individuals or entities to perform services in exchange for commission-based compensation. This agreement type is commonly used across various industries including sales, real estate, and financial services, where performance-based remuneration is standard practice. The document incorporates essential elements required by Australian law, including compliance with the Independent Contractors Act 2006, Fair Work Act 2009, and relevant state legislation. It provides comprehensive coverage of commission calculations, payment terms, performance metrics, and territorial rights, while maintaining sufficient flexibility to accommodate industry-specific requirements and various business models. The contract is structured to protect both parties' interests while ensuring clarity in their commercial relationship.
Suggested Sections

1. Parties: Identification of the principal and the commissioner/agent, including ABN/ACN and registered addresses

2. Background: Context of the agreement, nature of the business, and purpose of the commission arrangement

3. Definitions: Key terms used throughout the agreement, including specific industry terminology and commission-related definitions

4. Appointment and Scope: Terms of appointment, territory/market coverage, and scope of authorized activities

5. Commission Structure: Detailed explanation of commission rates, calculation methods, and qualifying criteria

6. Payment Terms: Timing of commission payments, payment methods, and handling of disputed amounts

7. Obligations of the Principal: Principal's responsibilities, including provision of information, support, and resources

8. Obligations of the Commissioner: Commissioner's duties, performance standards, and compliance requirements

9. Reporting and Records: Requirements for sales reporting, record-keeping, and audit rights

10. Term and Termination: Duration of the agreement, renewal provisions, and termination circumstances

11. Post-Termination Obligations: Handling of pending commissions and wrap-up procedures after termination

12. Confidentiality: Protection of confidential information and trade secrets

13. General Provisions: Standard legal clauses including governing law, notices, and dispute resolution

Optional Sections

1. Non-Compete and Non-Solicitation: Restrictions on competitive activities and client solicitation, used when protecting business interests is crucial

2. Intellectual Property: IP ownership and usage rights, included when the role involves creation or use of intellectual property

3. Insurance Requirements: Specific insurance obligations, included for high-risk activities or regulatory compliance

4. Performance Targets: Minimum performance requirements and consequences, used when specific targets are essential

5. Training and Support: Details of training provided and ongoing support, included for complex products or services

6. Sub-agents: Rules regarding appointment of sub-agents, included when sub-delegation is permitted

7. Marketing and Promotion: Guidelines for marketing activities and brand usage, included when commissioner handles promotion

8. Data Protection: Specific data handling requirements, included when personal or sensitive data is involved

Suggested Schedules

1. Schedule 1 - Commission Rates: Detailed breakdown of commission rates, tiers, and special incentives

2. Schedule 2 - Territory/Products: Specific definition of geographic territory and/or products/services covered

3. Schedule 3 - Reporting Templates: Standard forms and templates for regular reporting requirements

4. Schedule 4 - Performance Metrics: Detailed KPIs and measurement criteria

5. Schedule 5 - Approved Marketing Materials: List of approved marketing materials and usage guidelines

6. Appendix A - Calculation Examples: Examples of commission calculations for different scenarios

7. Appendix B - Operating Procedures: Detailed operational procedures and workflows

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 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

Technology

Manufacturing

Professional Services

Telecommunications

Automotive

Pharmaceuticals

Construction

Media and Advertising

Relevant Teams

Sales

Business Development

Legal

Finance

Compliance

Operations

Human Resources

Contract Administration

Commercial

Risk Management

Relevant Roles

Sales Director

Business Development Manager

Commission Agent

Sales Representative

Channel Partner Manager

Account Executive

Regional Sales Manager

Real Estate Agent

Insurance Broker

Financial Advisor

Commercial Director

Sales Operations Manager

Contract Administrator

Legal Counsel

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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