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Commission Only Contract

Commission Only Contract Template for Australia

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Key Requirements PROMPT example:

Commission Only Contract

"I need a Commission Only Contract for hiring an independent sales representative in the Australian financial services sector, who will sell investment products in the Victoria region starting March 2025, with a tiered commission structure based on quarterly sales targets."

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Document background
The Commission Only Contract is essential for businesses operating in Australia that engage independent contractors or sales representatives on a commission-only basis. This document type is particularly relevant when organizations want to establish performance-based compensation structures without creating traditional employment relationships. It addresses key aspects such as commission calculations, payment schedules, performance expectations, and compliance with Australian contractor legislation. The agreement is designed to protect both the principal's business interests and the contractor's rights while maintaining clarity about the nature of the relationship. It's commonly used in industries where sales performance directly determines compensation, such as real estate, insurance, and financial services, and must comply with Australian federal and state laws governing independent contractor relationships.
Suggested Sections

1. Parties: Identification of the principal/company and the commission agent/contractor

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

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

4. Appointment and Scope: Terms of appointment and precise scope of services to be provided

5. Term and Termination: Duration of the agreement and circumstances for termination

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

7. Payment Terms: Timeline and method of commission payments, including invoicing requirements

8. Obligations of the Agent: Key responsibilities, performance standards, and conduct requirements

9. Obligations of the Principal: Company's responsibilities including provision of information and support

10. Intellectual Property: Protection and ownership of IP rights

11. Confidentiality: Protection of confidential information and trade secrets

12. Independent Contractor Status: Clear statement of independent contractor relationship and its implications

13. Insurance and Liability: Insurance requirements and allocation of risks

14. General Provisions: Standard boilerplate clauses including notices, amendments, governing law

Optional Sections

1. Territory and Exclusivity: Used when the agent is assigned a specific geographic territory or exclusive rights

2. Performance Targets: Include when specific sales or performance targets are required

3. Training and Support: Used when the principal provides specific training or support services

4. Marketing and Promotion: Include when the agent has specific marketing responsibilities or restrictions

5. Non-Compete Clause: Used when restricting the agent from working with competitors

6. Equipment and Resources: Include when specifying who provides and maintains necessary equipment

7. Dispute Resolution: Optional detailed dispute resolution procedures beyond standard court jurisdiction

8. Assignment and Subcontracting: Used when there's a need to control ability to transfer rights or subcontract

Suggested Schedules

1. Commission Rates Schedule: Detailed breakdown of commission rates for different products/services

2. Territory Map: Visual representation of assigned geographic territory if applicable

3. Performance Metrics: Detailed KPIs and measurement criteria

4. Approved Marketing Materials: List or examples of approved marketing materials and guidelines

5. Product/Service List: Comprehensive list of products/services covered by the agreement

6. Required Insurance Coverage: Detailed insurance requirements and minimum coverage amounts

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions



























Clauses




























Relevant Industries

Real Estate

Insurance

Financial Services

Retail

Wholesale

Technology

Advertising

Manufacturing

Automotive

Professional Services

Relevant Teams

Sales

Legal

Human Resources

Finance

Business Development

Commercial

Compliance

Operations

Relevant Roles

Sales Director

Business Development Manager

Sales Manager

Commission Agent

Independent Sales Representative

Real Estate Agent

Insurance Broker

Sales Contractor

Channel Manager

Business Development Director

Commercial Director

Regional Sales Manager

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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