Sales Agent Commission Agreement Template for Germany

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Key Requirements PROMPT example:

Sales Agent Commission Agreement

"I need a Sales Agent Commission Agreement for an exclusive sales agent in Bavaria, Germany, who will sell our medical devices starting March 2025, with a 10% commission rate and minimum quarterly sales targets of €100,000."

Document background

The Sales Agent Commission Agreement is essential for businesses operating in Germany that wish to engage independent sales agents to market and sell their products or services. This document is specifically designed to comply with German law, particularly the Commercial Code (Handelsgesetzbuch - HGB), which provides substantial protection for commercial agents. The agreement is typically used when a company wants to expand its sales reach without employing direct sales staff, defining the agent's territory, commission structure, and responsibilities while protecting both parties' interests. It must include mandatory provisions required by German law regarding notice periods, commission calculations, and post-contractual obligations, with careful attention to the statutory rights of commercial agents, including potential compensation for customer base upon termination (Ausgleichsanspruch under §89b HGB).

Suggested Sections

1. Parties: Identification of the principal company and the sales agent, including full legal names, addresses, and registration details

2. Background: Brief context of the agreement and the parties' intention to enter into a sales agency relationship

3. Definitions: Key terms used throughout the agreement, including 'Territory', 'Products', 'Customers', 'Commission', and other relevant terms

4. Appointment and Scope: Formal appointment of the agent, definition of territory, and scope of authority

5. Agent's Rights and Obligations: Detailed responsibilities including promotion of products, customer service, reporting requirements, and compliance with laws

6. Principal's Rights and Obligations: Principal's duties including providing information, materials, and support to the agent

7. Commission Structure: Detailed commission rates, calculation methods, and conditions for earning commission as per §87 HGB

8. Payment Terms: Commission payment schedule, accounting periods, and statement requirements as per §87c HGB

9. Intellectual Property and Confidentiality: Protection of IP rights and confidential information

10. Term and Termination: Duration of agreement, notice periods, and grounds for termination as per §89 HGB

11. Post-Termination Provisions: Including commission on post-termination transactions and return of materials

12. General Provisions: Standard clauses including governing law, jurisdiction, entire agreement, and amendments

Optional Sections

1. Non-Compete Obligations: Post-contractual competition restrictions (only valid if in writing and with compensation as per §90a HGB)

2. Del Credere Provisions: If the agent guarantees customer payments (requires special written agreement as per §86b HGB)

3. Minimum Performance Requirements: Specific sales targets or performance metrics, if applicable

4. Sub-Agents: Rules regarding the appointment of sub-agents, if permitted

5. Insurance Requirements: Specific insurance obligations for the agent

6. Data Protection: Detailed GDPR compliance requirements if handling personal data

7. Marketing and Advertising: Specific provisions regarding marketing activities and materials

8. Training Requirements: Mandatory training or certification requirements for the agent

Suggested Schedules

1. Schedule 1: Products and Services: Detailed list of products/services the agent is authorized to sell

2. Schedule 2: Commission Rates: Detailed commission structure, including any variations by product or customer type

3. Schedule 3: Territory Definition: Detailed description or map of the agent's exclusive or non-exclusive territory

4. Schedule 4: Reporting Templates: Standard forms for activity reports and commission calculations

5. Schedule 5: Customer List: List of existing customers or reserved accounts, if applicable

6. Appendix A: Sales Targets: Specific sales targets and performance metrics if applicable

7. Appendix B: Operating Procedures: Detailed procedures for order processing, customer service, and reporting

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Manufacturing

Industrial Equipment

Consumer Goods

Software and Technology

Professional Services

Medical Devices

Pharmaceuticals

Construction Materials

Automotive

Electronics

Fashion and Textiles

Financial Services

Insurance

Real Estate

Telecommunications

Relevant Teams

Legal

Sales

Business Development

Commercial

Finance

Compliance

Operations

Executive Leadership

Contract Administration

Risk Management

Relevant Roles

Sales Director

Commercial Director

Business Development Manager

Sales Agent

Regional Sales Manager

Legal Counsel

Contracts Manager

Chief Commercial Officer

Sales Operations Manager

Channel Manager

Chief Executive Officer

Managing Director

Head of Sales

Compliance Officer

Chief Financial Officer

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Authors

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