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Commission Only Contract Template for Canada

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Key Requirements PROMPT example:

Commission Only Contract

"I need a Commission Only Contract for a real estate sales agent who will be operating exclusively in the Greater Toronto Area, with a graduated commission structure starting February 1, 2025, and including specific territory mapping and customer referral bonus provisions."

Document background
This Commission Only Contract is specifically designed for use in Canadian business environments where compensation is entirely commission-based. The document is essential for businesses seeking to engage sales professionals, agents, or representatives on a commission-only basis while ensuring compliance with Canadian federal and provincial employment standards. It includes comprehensive provisions for commission calculations, payment schedules, performance metrics, and legal protections for both parties. The contract is particularly valuable for industries with commission-based sales models and can be customized to accommodate various commission structures while maintaining compliance with Canadian employment legislation, tax requirements, and worker classification standards.
Suggested Sections

1. Parties: Identification of the employer and commission-based worker, including full legal names and addresses

2. Background: Context of the agreement and nature of the commission-based relationship

3. Definitions: Key terms used throughout the agreement, including 'Commission', 'Sales', 'Gross Revenue', etc.

4. Engagement: Terms of engagement and confirmation of commission-only status

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

6. Payment Terms: Timing and method of commission payments, including any holdbacks or adjustments

7. Duties and Responsibilities: Specific duties, sales targets, and performance expectations

8. Term and Termination: Duration of the agreement and conditions for termination

9. Confidentiality: Protection of confidential information and trade secrets

10. Non-Solicitation: Restrictions on soliciting customers or employees

11. Independent Contractor Status: Clear statement of independent contractor relationship if applicable

12. General Provisions: Standard clauses including governing law, entire agreement, and amendments

Optional Sections

1. Training and Support: Details of any training or support provided by the company, used when specific training programs exist

2. Expense Reimbursement: Terms for reimbursing business expenses, if applicable

3. Benefits: Any benefits provided despite commission-only status, included if benefits are offered

4. Non-Competition: Restrictions on competing activities, used when protecting market share is crucial

5. Territory Assignment: Definition of geographic or customer territory, used when territories are assigned

6. Intellectual Property: Ownership of IP created during engagement, used when IP creation is possible

7. Insurance Requirements: Required insurance coverage, used when contractor must maintain own insurance

8. Dispute Resolution: Specific procedures for resolving disputes, used when alternative dispute resolution is preferred

Suggested Schedules

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

2. Schedule B - Sales Targets: Specific sales targets and any corresponding bonus structures

3. Schedule C - Territory Map: Detailed map or description of assigned sales territory

4. Schedule D - Approved Expenses: List of reimbursable expenses and approval process

5. Schedule E - Reporting Requirements: Templates and requirements for sales reporting

6. Appendix 1 - Sales Process: Step-by-step sales process and compliance requirements

7. Appendix 2 - Commission Calculation Examples: Examples showing how commissions are calculated in various scenarios

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 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

Automotive Sales

Technology Sales

Telecommunications

Manufacturing Sales

Pharmaceutical Sales

Direct Sales

Advertising and Media

Professional Services

Relevant Teams

Sales

Business Development

Revenue

Account Management

Channel Partners

Direct Sales

Field Sales

Inside Sales

Commercial

Retail Sales

Enterprise Sales

Relevant Roles

Sales Representative

Real Estate Agent

Insurance Broker

Business Development Representative

Sales Executive

Account Executive

Commission Sales Agent

Territory Sales Manager

Independent Sales Representative

Sales Consultant

Financial Advisor

Sales Associate

Business Development 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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