Commission Based Consulting Agreement Template for India

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Key Requirements PROMPT example:

Commission Based Consulting Agreement

"I need a Commission Based Consulting Agreement for engaging a sales consultant who will help expand our IT services in South India, with a 5% commission on successful deals and additional performance bonuses for exceeding quarterly targets, starting March 2025."

Document background
The Commission Based Consulting Agreement is essential for businesses in India seeking to engage external expertise while aligning compensation with specific performance outcomes or revenue generation. This document type is particularly relevant when organizations want to structure consulting relationships where the consultant's remuneration is directly tied to achieved results, such as sales targets, cost savings, or other measurable metrics. The agreement must comply with Indian contract law, tax regulations (including GST and TDS requirements), and relevant professional services legislation. It typically includes detailed commission calculations, performance metrics, service scope, and protection mechanisms for both parties. This type of agreement is commonly used in business development, sales consulting, market expansion projects, and other scenarios where performance-based compensation models are appropriate.
Suggested Sections

1. Parties: Identification of the contracting parties including full legal names, addresses, and registration details

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Key terms used throughout the agreement defined for clarity and consistency

4. Scope of Services: Detailed description of consulting services to be provided

5. Commission Structure: Clear definition of commission rates, calculation methods, and payment triggers

6. Payment Terms: Terms for commission payment, including timing, method, and currency

7. Term and Termination: Duration of the agreement and conditions for termination

8. Obligations of the Consultant: Key responsibilities, performance standards, and deliverables

9. Obligations of the Company: Company's responsibilities including providing necessary information and support

10. Confidentiality: Protection of confidential information and trade secrets

11. Intellectual Property Rights: Ownership and rights to work products and pre-existing IP

12. Representations and Warranties: Standard assertions about capacity, authority, and quality of services

13. Indemnification: Protection against losses and liability allocation

14. Governing Law and Jurisdiction: Applicable law and courts for dispute resolution

15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Non-Compete: Restrictions on competitive activities, used when consultant may have access to sensitive business information

2. Non-Solicitation: Restrictions on soliciting employees or clients, important for client-facing consultants

3. Insurance: Requirements for professional liability insurance, relevant for high-risk consulting services

4. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term agreements

5. Audit Rights: Company's right to audit consultant's records, important for complex commission structures

6. Compliance with Laws: Specific regulatory compliance requirements, necessary for regulated industries

7. Assignment: Rights to transfer or assign the agreement, relevant for corporate restructuring scenarios

8. Exclusivity: Restrictions on working with competitors, used in strategic consulting relationships

9. Performance Metrics: Specific KPIs and performance standards, useful for complex consulting arrangements

Suggested Schedules

1. Schedule A - Services Description: Detailed scope of services, deliverables, and performance standards

2. Schedule B - Commission Rates and Calculations: Detailed commission structure, including examples and specific rates

3. Schedule C - Service Level Agreement: Specific performance metrics, response times, and quality standards

4. Schedule D - Approved Expenses: List of reimbursable expenses and approval process

5. Schedule E - Key Personnel: List of key consultant personnel assigned to the project

6. Appendix 1 - Reporting Templates: Standard formats for activity reports and commission calculations

7. Appendix 2 - Compliance Requirements: Specific regulatory or internal compliance requirements

8. Appendix 3 - Confidentiality Agreement: Detailed confidentiality terms and requirements

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 Industries

Information Technology

Financial Services

Real Estate

Manufacturing

Retail

Healthcare

Education

Professional Services

E-commerce

Telecommunications

Business Development

Sales and Marketing

Management Consulting

Market Research

Business Process Outsourcing

Relevant Teams

Legal

Finance

Human Resources

Procurement

Business Development

Sales

Operations

Compliance

Contract Administration

Risk Management

Strategy

Commercial Operations

Relevant Roles

Business Development Manager

Sales Director

Consulting Partner

Chief Financial Officer

Legal Counsel

Procurement Manager

Human Resources Director

Operations Manager

Commercial Director

Strategy Consultant

Channel Partner Manager

Business Analyst

Contract Manager

Compliance Officer

Project 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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