Commission Agreements

A commission agreement is a formal contract between a company and an individual, such as a salesperson or agent, outlining how they will earn compensation based on sales or specific performance targets. Instead of receiving a fixed salary, the individual is paid a percentage of the sales they generate or achieve. The agreement specifies the commission rate, payment schedule, and any conditions or limitations. It helps ensure clarity and fair compensation for their efforts, aligning incentives and providing legal clarity for both parties involved.