The Business Development Commission Agreement serves as a crucial legal framework for companies in Singapore seeking to engage external parties for business development services. This agreement is particularly relevant when organizations wish to expand their market presence through commission-based arrangements. The document addresses key aspects such as commission structures, performance targets, territorial rights, and compliance with Singapore's regulatory requirements. It's designed to protect both parties' interests while ensuring clarity in commercial relationships and alignment with local legal standards.
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Key Requirements PROMPT example:
Business Development Commission Agreement
"I need a Business Development Commission Agreement for my Singapore-based tech company, with a 5% commission structure for the first $1M in sales and 7% thereafter, including strict non-compete provisions for the APAC region starting from March 2025."
1. Parties: Identification and details of contracting parties
2. Background: Context and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Appointment and Scope: Terms of appointment and scope of services
5. Commission Structure: Calculation and payment terms of commission
6. Obligations of Parties: Rights and responsibilities of each party
7. Term and Termination: Duration and termination provisions
8. Confidentiality: Protection of confidential information
9. Governing Law: Applicable law and jurisdiction
1. Non-Compete: Restrictions on competitive activities - used when protecting business interests from competition
2. Intellectual Property: IP rights and ownership - used when IP is created or shared during business development
3. Force Majeure: Provisions for unforeseeable circumstances - used when long-term commitments are involved
4. Insurance: Insurance requirements - used when high-value transactions are involved
1. Commission Rate Schedule: Detailed breakdown of commission rates and calculations
2. Territory Schedule: Definition of geographical areas covered
3. Performance Metrics: Specific targets and KPIs
4. Product/Service Schedule: List of products/services covered by the agreement
5. Payment Terms Schedule: Detailed payment procedures and timelines
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