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Commission Share Agreement Template for Singapore

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Key Requirements PROMPT example:

Commission Share Agreement

"I need a Commission Share Agreement between our software company and our new sales partner in Singapore, with a 60-40 split on all enterprise software sales, including quarterly performance targets and a non-compete clause, starting from January 2025."

Document background
The Commission Share Agreement is essential for businesses operating in Singapore that wish to formalize arrangements for sharing commission income. This document is particularly relevant when multiple parties contribute to generating sales or business opportunities and need to divide the resulting commission fairly. The agreement ensures clarity in commission calculations, payment schedules, and performance expectations while complying with Singapore's legal framework. It helps prevent disputes by clearly defining each party's rights and obligations, making it a crucial tool for businesses utilizing commission-based compensation structures.
Suggested Sections

1. Parties: Identification and details of all parties to the agreement

2. Background: Context and purpose of the commission sharing arrangement

3. Definitions: Key terms used throughout the agreement

4. Commission Structure: Detailed breakdown of commission calculations and sharing ratios

5. Payment Terms: Timing, method, and conditions for commission payments

6. Obligations of Parties: Rights and responsibilities of each party

7. Term and Termination: Duration of agreement and termination provisions

8. Governing Law: Specification of Singapore law as governing law

Optional Sections

1. Non-Compete: Restrictions on competitive activities during and after the agreement term

2. Intellectual Property: Rights and usage of intellectual property in relation to the commission-generating activities

3. Force Majeure: Provisions for handling unforeseeable circumstances that prevent performance

4. Data Protection: Compliance provisions with Singapore Personal Data Protection Act (PDPA)

Suggested Schedules

1. Commission Calculation Schedule: Detailed formulas and examples of commission calculations

2. Performance Metrics Schedule: Specific KPIs and targets for commission eligibility

3. Territory Schedule: Geographic areas covered by the commission sharing arrangement

4. Product Schedule: List of products or services covered by the commission arrangement

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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Industries

Contract Act 1872: Primary legislation governing contract formation, validity, and enforcement in Singapore, including basic elements like offer, acceptance, consideration, and intention to create legal relations

Employment Act (Chapter 91): Key legislation governing employment relationships in Singapore, relevant if the commission sharing arrangement involves employees

Employment Claims Act 2016: Legislation establishing the framework for resolving employment disputes and salary-related claims in Singapore

Central Provident Fund Act: Mandatory social security savings scheme that may be applicable if the commission arrangement involves employees

Income Tax Act: Legislation governing taxation of income, including treatment of commission payments

Goods and Services Tax Act: Legislation governing GST implications on commission payments and business transactions

Competition Act (Chapter 50B): Legislation prohibiting anti-competitive agreements and practices that could affect commission sharing arrangements

Civil Law Act: Legislation containing provisions relevant to agency relationships and commercial contracts

Personal Data Protection Act 2012: Legislation governing the collection, use, and disclosure of personal data in Singapore

Mediation Act 2017: Framework for conducting mediation proceedings in Singapore as a dispute resolution mechanism

Arbitration Act: Legislative framework for conducting arbitration proceedings in Singapore

Limitation Act: Legislation setting time limits for bringing legal actions and enforcing contractual rights

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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