Split Sales Commission Agreement Template for England and Wales

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Key Requirements PROMPT example:

Split Sales Commission Agreement

"I need a Split Sales Commission Agreement for my real estate agency to formalize a 60/40 commission split between our primary and supporting agents, with monthly payments and specific provisions for international property sales."

Document background
A Split Sales Commission Agreement becomes necessary when multiple sales agents contribute to securing a sale and need a formal arrangement for sharing the resulting commission. This document, governed by English and Welsh law, provides clarity on commission allocation, prevents disputes, and ensures fair compensation for all parties involved. It typically includes detailed commission calculations, payment schedules, and specific roles and responsibilities of each agent. This agreement is particularly important in industries where collaborative selling is common and helps maintain transparent and professional relationships between sales partners.
Suggested Sections

1. Parties: Identification and details of all parties involved in the commission split arrangement

2. Background: Context of the agreement and brief explanation of why parties are entering into it

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

4. Commission Structure: Detailed breakdown of how commissions will be split between parties

5. Payment Terms: Timing and method of commission payments, including any conditions precedent

6. Term and Termination: Duration of agreement and circumstances under which it can be terminated

7. Obligations of the Parties: Specific duties and responsibilities of each party

Optional Sections

1. Non-Compete Provisions: Restrictions on competing activities - use when parties want to prevent each other from competing during and after the agreement

2. International Sales: Specific provisions for cross-border sales - use when sales territory extends beyond UK borders

3. Training Requirements: Obligations regarding product or sales training - use when specific product knowledge or expertise is required

Suggested Schedules

1. Schedule 1 - Commission Rates: Detailed breakdown of commission percentages and calculation methods

2. Schedule 2 - Territory Definition: Specific geographical areas or customer segments covered

3. Schedule 3 - Products/Services: List of products or services subject to commission arrangement

4. Schedule 4 - Reporting Template: Standard format for sales and commission reports

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

Clauses
Relevant Industries
Relevant Teams
Relevant Roles
Industries

Commercial Agents Regulations 1993: Key legislation governing relationships between principals and commercial agents in England and Wales, implementing EU Directive 86/653/EEC

Sales of Goods Act 1979: Fundamental legislation governing the sale of goods, which may be relevant to the underlying sales transactions

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce terms of a contract

Bribery Act 2010: Anti-corruption legislation that must be considered in commission structures and payment arrangements

Competition Act 1998: Ensures commission arrangements don't violate competition law principles

Employment Rights Act 1996: Important to ensure commission agreement doesn't inadvertently create an employment relationship

Agency Workers Regulations 2010: Regulations protecting agency workers' rights that may impact commission structures

National Minimum Wage Act 1998: May be relevant if commission payments could fall below minimum wage thresholds

Value Added Tax Act 1994: Governs VAT treatment of commission payments and related transactions

UK GDPR: Data protection regulations affecting how personal data is handled in the commission relationship

Data Protection Act 2018: UK's implementation of data protection principles, working alongside UK GDPR

Contract Formation Principles: Common law requirements for valid contracts including offer, acceptance, consideration, and intention to create legal relations

Doctrine of Privity: Common law principle determining who can enforce contract terms

Penalties Doctrine: Common law rules distinguishing between enforceable liquidated damages and unenforceable penalties

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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