Sales Commission Contract Template for Nigeria

The Sales Commission Contract is a crucial document used in Nigerian business operations to formalize commission-based sales arrangements between companies and their sales representatives. This agreement is essential when a business wants to engage sales professionals on a commission basis, whether as independent contractors or employees. The document addresses key aspects such as commission rates, payment structures, sales territories, and performance expectations, while ensuring compliance with Nigerian labor laws, tax regulations, and commercial legislation. It's particularly important in protecting both parties' interests by clearly defining rights, responsibilities, and compensation structures. The contract type is commonly used across various industries in Nigeria where sales-based compensation is standard practice, and it must conform to both federal and state-level regulatory requirements.

1. Parties: Identification of the company and the sales agent/representative, including full legal names, addresses, and registration details if applicable

2. Background: Context of the agreement, including the company's business nature and the purpose of engaging the sales agent

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

4. Appointment and Territory: Formal appointment of the sales agent and definition of the geographical area or market segment where they are authorized to operate

5. Duration and Term: Period of the agreement, including start date, initial term, and renewal conditions

6. Commission Structure: Detailed explanation of commission rates, calculation methods, and qualifying sales

7. Payment Terms: Timing and method of commission payments, including any conditions precedent to payment

8. Performance Expectations: Minimum sales targets, quotas, or other performance metrics required

9. Duties and Responsibilities: Specific obligations of the sales agent, including reporting requirements and professional conduct

10. Company's Obligations: Support, training, and resources to be provided by the company

11. Intellectual Property: Protection of company trademarks, logos, and confidential information

12. Non-Compete and Non-Solicitation: Restrictions on competitive activities during and after the agreement

13. Termination: Grounds for termination, notice requirements, and consequences of termination

14. Governing Law: Specification of Nigerian law as governing law and jurisdiction for disputes