Commission Based Consulting Agreement Template for New Zealand

The Commission Based Consulting Agreement serves as a crucial legal framework for businesses in New Zealand seeking to engage external expertise on a performance-linked compensation model. This document is specifically designed for situations where consultants or advisors are compensated primarily through commission-based arrangements tied to specific outcomes, sales, or performance metrics. It addresses key requirements under New Zealand law, including contractor status definition, GST considerations, and fair trading practices. The agreement is particularly valuable for businesses implementing revenue-sharing models with consultants or establishing performance-based advisory relationships. It includes comprehensive provisions for service scope, commission structures, performance standards, and risk allocation, while ensuring compliance with relevant New Zealand legislation governing independent contractor relationships.

1. Parties: Identifies and defines the parties to the agreement - the Company and the Consultant

2. Background: Sets out the context of the agreement, including the Company's business, Consultant's expertise, and intention to enter into a commission-based arrangement

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Appointment and Status: Establishes the Consultant's appointment and explicitly confirms independent contractor status

5. Term: Specifies the duration of the agreement, including start date and termination provisions

6. Services: Details the consulting services to be provided

7. Commission Structure: Defines the commission rates, calculation methods, and payment terms

8. Performance Standards: Establishes expected quality and performance standards for the services

9. Reporting and Administration: Outlines reporting requirements and administrative procedures

10. Intellectual Property: Addresses ownership and usage rights of intellectual property created during the engagement

11. Confidentiality: Defines confidential information and establishes protection obligations

12. Non-Compete and Non-Solicitation: Sets out restrictions on competitive activities and client solicitation

13. Termination: Details circumstances and procedures for ending the agreement

14. General Provisions: Includes standard legal provisions such as governing law, notices, and entire agreement