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Independent Sales Commission Agreement Template for Canada

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Key Requirements PROMPT example:

Independent Sales Commission Agreement

"I need an Independent Sales Commission Agreement for a technology software company based in Ontario, with a 15% commission structure for new clients and 10% for renewals, including non-compete provisions for the Greater Toronto Area."

Document background
This Independent Sales Commission Agreement is designed for use in the Canadian market when a company wishes to engage independent sales representatives rather than employees for selling products or services. It's particularly useful for businesses looking to expand their sales reach without increasing their permanent workforce. The agreement covers essential elements including commission structures, sales territories, performance expectations, and reporting requirements, while ensuring compliance with Canadian federal and provincial regulations regarding independent contractor relationships. It's structured to protect both the company's interests (through confidentiality and non-solicitation provisions) and the representative's interests (through clear commission terms and payment schedules).
Suggested Sections

1. Parties: Identifies the principal company and the independent sales representative

2. Background: Establishes context of the agreement and confirms independent contractor relationship

3. Definitions: Defines key terms used throughout the agreement including 'Territory', 'Products', 'Commissions', 'Customers'

4. Appointment and Territory: Defines the scope of appointment and geographical territory for sales activities

5. Commission Structure: Details the commission rates, calculation methods, and payment terms

6. Payment Terms: Specifies when and how commissions will be paid, including payment frequency and methods

7. Independent Contractor Status: Explicitly confirms the independent nature of the relationship and its implications

8. Duties and Responsibilities: Outlines the sales representative's specific obligations and performance expectations

9. Term and Termination: Specifies agreement duration and conditions for termination by either party

10. Confidentiality: Protects company's confidential information and trade secrets

11. Non-Solicitation: Prevents poaching of customers or employees during and after the agreement

12. Reporting Requirements: Details the sales activity reporting obligations of the representative

13. Dispute Resolution: Establishes process for resolving disagreements between parties

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

Optional Sections

1. Non-Competition: Restricts representative from competing activities - only include if legally enforceable in the jurisdiction

2. Training Requirements: Specifies mandatory training programs - include if specific training is required

3. Minimum Performance Standards: Sets sales targets or quotas - include if specific performance metrics are required

4. Expense Reimbursement: Details which expenses may be reimbursed - include if any expenses will be covered

5. Insurance Requirements: Specifies required insurance coverage - include if representative must maintain specific insurance

6. Marketing and Advertising: Guidelines for promotional activities - include if representative will conduct marketing

7. Intellectual Property: Rules for using company's IP - include if representative will use company branding

8. Sub-agents: Rules about appointing sub-agents - include if sub-agents might be permitted

Suggested Schedules

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

2. Schedule B - Territory Description: Detailed description or map of the assigned sales territory

3. Schedule C - Product List: Complete list of products/services the representative is authorized to sell

4. Schedule D - Reporting Templates: Standard forms for required sales activity reporting

5. Schedule E - Performance Metrics: Specific sales targets and evaluation criteria if applicable

6. Appendix 1 - Expense Policy: Detailed policy on allowable expenses and reimbursement procedures if applicable

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








































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Relevant Industries

Retail

Manufacturing

Technology

Professional Services

Real Estate

Financial Services

Insurance

Telecommunications

Consumer Goods

Industrial Equipment

Medical Devices

Pharmaceutical

Software

Construction Materials

Automotive

Relevant Teams

Sales

Legal

Human Resources

Finance

Operations

Commercial

Business Development

Compliance

Contract Administration

Revenue Operations

Relevant Roles

Sales Director

Chief Revenue Officer

Business Development Manager

Sales Operations Manager

Channel Manager

Independent Sales Representative

Sales Agent

Commission-Based Sales Representative

Territory Sales Manager

Regional Sales Director

VP of Sales

Chief Commercial Officer

Contract Manager

Legal Counsel

HR Director

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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