Marketing Commission Agreement Template for India

The Marketing Commission Agreement is essential for businesses operating in India that wish to engage external marketing representatives or agencies on a commission basis. This document is particularly relevant when companies seek to expand their market presence through third-party marketing efforts while maintaining control over their brand and commercial interests. The agreement, governed by Indian law, typically includes detailed provisions on commission structures, performance metrics, territorial rights, and compliance requirements. It's commonly used when businesses want to incentivize marketing performance through commission-based compensation rather than fixed fees. The document ensures compliance with Indian commercial laws, including the Indian Contract Act, 1872, Competition Act, 2002, and relevant tax regulations, while providing clear guidelines for both parties regarding their rights, obligations, and compensation structure.

1. Parties: Identification of the principal company and the marketing agent/representative with full legal names and addresses

2. Background: Context of the agreement, brief description of the business relationship and purpose

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

4. Appointment and Scope: Terms of appointment, exclusivity/non-exclusivity, and detailed scope of marketing services

5. Territory and Products: Definition of geographical area and specific products/services covered under the agreement

6. Commission Structure: Detailed explanation of commission rates, calculation methods, and payment terms

7. Obligations of the Agent: Marketing representative's duties, responsibilities, and performance standards

8. Obligations of the Principal: Company's commitments, support, and responsibilities towards the marketing agent

9. Payment Terms: Commission payment schedule, currency, payment methods, and handling of expenses

10. Term and Termination: Duration of agreement, renewal terms, and conditions for termination

11. Confidentiality: Protection of confidential information and trade secrets

12. Non-Competition: Restrictions on competing activities during and after the agreement

13. Intellectual Property: Usage rights and protection of trademarks, logos, and marketing materials

14. Governing Law: Applicable law and jurisdiction for dispute resolution

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