Contractor Commission Agreement Template for New Zealand

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Key Requirements PROMPT example:

Contractor Commission Agreement

"I need a Contractor Commission Agreement for our real estate agency to engage independent sales agents, with a tiered commission structure starting from March 2025, including provisions for both residential and commercial property sales."

Document background
The Contractor Commission Agreement is essential for businesses in New Zealand engaging independent contractors on a commission-based payment structure. This document is particularly relevant when engaging sales professionals, business development representatives, or service providers whose compensation is tied to their performance or revenue generation. The agreement ensures compliance with New Zealand's Contract and Commercial Law Act 2017 and related legislation while clearly establishing the contractor's independent status. It includes detailed provisions for commission calculations, payment terms, performance metrics, and territorial rights, making it suitable for various industries where commission-based compensation is common. The agreement helps prevent potential disputes by clearly defining expectations, obligations, and the commission structure while maintaining the distinction between independent contractors and employees.
Suggested Sections

1. Parties: Identifies and provides full legal details of all parties to the agreement

2. Background: Sets out the context and purpose of the agreement, including the nature of the business and the general intention to engage the contractor

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

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

5. Services: Detailed description of the services to be provided by the contractor

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

7. Payment Terms: Specifies payment frequency, methods, and any conditions precedent to payment

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

9. Term and Termination: Specifies the duration of the agreement and circumstances for termination

10. Obligations and Responsibilities: Details the specific obligations of both parties

11. Intellectual Property: Addresses ownership and usage rights of any IP created during the service provision

12. Confidentiality: Protects confidential information and trade secrets

13. Liability and Indemnity: Sets out liability limitations and indemnification obligations

14. General Provisions: Includes standard boilerplate clauses such as notices, amendment procedures, and governing law

Optional Sections

1. Non-Compete: Restricts contractor from competing activities - include when protecting market position is crucial

2. Insurance: Specifies required insurance coverage - include when services involve significant risks

3. Compliance with Policies: Requires adherence to company policies - include when contractor works on-site or represents the company

4. Reporting Requirements: Details specific reporting obligations - include for complex service arrangements

5. Training and Support: Outlines any training provided - include when specific systems or processes need to be learned

6. Expenses: Details reimbursable expenses - include when contractor may incur business expenses

7. Dispute Resolution: Specifies detailed dispute resolution procedures - include for high-value or complex arrangements

8. Assignment and Subcontracting: Controls ability to delegate or transfer rights - include when service quality is crucial

Suggested Schedules

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

2. Schedule 2 - Commission Rates and Calculations: Detailed breakdown of commission structures, including any tiered rates or bonus schemes

3. Schedule 3 - Performance Metrics: Specific KPIs and performance measurement criteria

4. Schedule 4 - Territory or Client List: Defined geographic area or specific clients covered by the agreement

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

6. Appendix A - Required Forms: Standard forms for invoicing, reporting, or commission calculations

7. Appendix B - Company Policies: Relevant company policies that apply to the contractor

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 legal definitions
Clauses
Relevant Industries

Real Estate

Insurance

Financial Services

Retail

Technology Sales

Advertising and Media

Manufacturing

Professional Services

Recruitment

Automotive Sales

Pharmaceutical Sales

Telecommunications

Relevant Teams

Sales

Business Development

Commercial

Operations

Legal

Finance

Human Resources

Procurement

Channel Partners

Marketing

Account Management

Relevant Roles

Sales Representative

Business Development Manager

Real Estate Agent

Insurance Broker

Marketing Consultant

Recruitment Consultant

Commercial Agent

Territory Manager

Account Executive

Sales Agent

Commission Agent

Business Broker

Financial Advisor

Distribution Agent

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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