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A Commission Agreement sets out how and when someone gets paid for making sales or bringing in business. It's a binding contract that spells out commission rates, payment terms, and performance targets between a company and its sales representatives, agents, or brokers in Singapore.

Common in real estate, insurance, and retail sectors, these agreements protect both parties under Singapore's Contract Law. They typically include key details like commission structures (flat rates or sliding scales), payment schedules, clawback provisions, and sales territory boundaries. Clear commission terms help prevent disputes and ensure compliance with local employment and tax regulations.

Use a Commission Agreement when paying team members, agents, or partners based on their sales performance. This document becomes essential before starting any commission-based work relationship, especially in Singapore's competitive sales environments like real estate, insurance, and retail sectors.

Having this agreement in place protects your business when sales targets are missed, disputes arise over payment timing, or questions come up about territory rights. It's particularly important for companies expanding their sales force or launching new commission structures. The agreement helps comply with Singapore's employment laws while providing clear documentation for accounting and tax purposes.

• Commission Contract Agreement: Standard template for direct sales teams, with basic commission structures and performance metrics
• Joint Venture Commission Agreement: Specialized for partnership ventures, splitting commissions between multiple parties
• Middleman Commission Agreement: Designed for intermediaries and brokers who facilitate deals
• Artwork Commission Agreement: Tailored for creative projects with unique pricing and delivery terms
• Consulting Commission Agreement: Focused on advisory services with performance-based compensation

• Sales Organizations: Companies that engage sales representatives, from small businesses to large corporations, use Commission Agreements to structure performance-based pay
• Sales Representatives: Individual salespeople who earn commission-based income, including real estate agents, insurance brokers, and retail sales staff
• Legal Counsel: In-house or external lawyers who draft and review agreements to ensure compliance with Singapore employment laws
• HR Managers: Responsible for implementing and administering commission structures within their organizations
• Finance Teams: Handle commission calculations, payments, and maintain records for tax and audit purposes

• Party Details: Gather full legal names, business registration numbers, and contact details for all involved parties
• Commission Structure: Define exact commission rates, payment thresholds, and calculation methods
• Performance Metrics: Outline specific sales targets, quotas, or other measurable goals that trigger commission payments
• Payment Terms: Specify payment frequency, methods, and any conditions that must be met before commission is earned
• Territory Rights: Document any geographical or customer segment restrictions
• Document Generation: Use our platform to create a legally-sound Commission Agreement that includes all required elements under Singapore law

• Party Identification: Full legal names, addresses, and registration numbers of all parties involved
• Commission Terms: Clear calculation methods, rates, and conditions for earning commission
• Payment Schedule: Specific timing and methods for commission payments under Singapore's Payment Services Act
• Performance Metrics: Measurable targets and evaluation criteria that trigger commission
• Termination Clauses: Conditions for ending the agreement and handling outstanding commissions
• Non-Compete Terms: Reasonable restrictions on competitive activities during and after the agreement
• Dispute Resolution: Singapore law as governing law and local mediation procedures

A Commission Agreement differs significantly from an Agency Agreement, though they're often confused in Singapore's business landscape. While both involve representatives acting on behalf of a company, their scope and focus are quite different.

• Payment Structure: Commission Agreements specifically detail performance-based compensation, while Agency Agreements may include fixed fees, retainers, or other payment arrangements
• Authority Level: Agency Agreements grant broader powers to represent and bind the company, whereas Commission Agreements typically limit authority to sales activities
• Legal Obligations: Agency Agreements create fiduciary duties and deeper legal responsibilities, while Commission Agreements focus mainly on sales targets and compensation terms
• Duration: Agency Agreements often establish longer-term relationships with broader responsibilities, while Commission Agreements commonly focus on specific sales periods or targets