Commission Based Consulting Agreement Template for Malaysia

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Key Requirements PROMPT example:

Commission Based Consulting Agreement

"I need a Commission Based Consulting Agreement for engaging a business development consultant starting March 1, 2025, with a 10% commission structure on successful client acquisitions in the Malaysian market, including standard confidentiality and non-compete provisions."

Document background
The Commission Based Consulting Agreement is essential for businesses in Malaysia seeking to engage consultants on a performance-linked compensation model. This document is particularly relevant when organizations want to align consultant remuneration with specific business outcomes or targets. It complies with Malaysian legal requirements, including the Contracts Act 1950 and relevant commercial regulations, while clearly establishing an independent contractor relationship. The agreement is commonly used for sales consultants, business development professionals, and advisory services where compensation is tied to success metrics such as revenue generation, client acquisition, or project completion. It includes comprehensive provisions for commission calculation, payment terms, performance expectations, and protection of business interests through confidentiality and IP clauses.
Suggested Sections

1. Parties: Identification of the company and the consultant, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, nature of the company's business, and general purpose of the consulting arrangement

3. Definitions: Key terms used throughout the agreement, including 'Services', 'Commission', 'Intellectual Property', etc.

4. Appointment and Scope: Terms of consultant's appointment and detailed scope of services to be provided

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Commission Structure: Detailed explanation of commission calculations, payment terms, and conditions for earning commission

7. Consultant's Obligations: Key responsibilities, performance standards, and compliance requirements

8. Company's Obligations: Company's responsibilities, including provision of information and support

9. Independent Contractor Status: Clear statement of consultant's status as independent contractor, not employee

10. Confidentiality: Obligations regarding confidential information and trade secrets

11. Intellectual Property: Ownership and rights to materials created during the consultation

12. Termination: Grounds for termination, notice periods, and consequences of termination

13. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes

14. General Provisions: Standard clauses including notices, amendment process, and severability

Optional Sections

1. Non-Compete: Restrictions on consultant's ability to work with competitors (include if protecting market position is crucial)

2. Non-Solicitation: Restrictions on soliciting company's clients or employees (include for client-facing roles)

3. Insurance: Requirements for professional indemnity or other insurance (include for high-risk services)

4. Performance Metrics: Specific KPIs and performance measurement criteria (include if commission is performance-based)

5. Training and Support: Details of any training or support provided by company (include for complex service arrangements)

6. Expenses: Policy on reimbursement of expenses (include if consultant may incur business expenses)

7. Data Protection: Specific obligations under PDPA (include if personal data processing is involved)

8. Force Majeure: Provisions for unforeseen circumstances (include for long-term arrangements)

Suggested Schedules

1. Schedule 1 - Services Description: Detailed description of consulting services to be provided

2. Schedule 2 - Commission Structure: Detailed commission rates, calculation methods, and examples

3. Schedule 3 - Performance Metrics: Specific KPIs, targets, and measurement methods

4. Schedule 4 - Reporting Requirements: Templates and timing for activity and performance reporting

5. Schedule 5 - Approved Expenses: List of approved business expenses and reimbursement procedures

6. Appendix A - Confidentiality Agreement: Detailed confidentiality terms and requirements

7. Appendix B - Company Policies: Relevant company policies consultant must comply with

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

Financial Services

Real Estate

Information Technology

Management Consulting

Sales and Marketing

Professional Services

Insurance

Education and Training

Healthcare

Telecommunications

Business Development

Retail

Relevant Teams

Legal

Human Resources

Finance

Procurement

Business Development

Sales

Operations

Compliance

Commercial

Relevant Roles

Business Development Consultant

Sales Consultant

Marketing Advisor

Financial Advisor

Property Consultant

Management Consultant

Strategy Consultant

IT Solutions Consultant

Training Consultant

Recruitment Consultant

Investment Advisor

Business Transformation Consultant

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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