Introduction & Commission Agreement (A213)


 
Introduction & Commission Agreement

This commission agreement is designed for use where one business agrees to introduce another business to its customers or clients in return for a commission fee. 

This contract contains 15 clauses covering

  • introductions
  • your role
  • commission
  • payment
  • commencement & duration
  • confidentiality
  • good faith
  • third party enquiries
  • independence & authority
  • assignment & subcontracting
  • termination
  • indemnity
  • no warranty
  • notices
  • resolution of disputes

This commission contract is suitable for a range of businesses – from  a wedding planner who introduces a florist to her clients to a carpenter who introduces a decorator to his clients – and vice versa in each case.

The agreement is presented in the form of a user-friendly letter. 


Want more info? - See detailed Explanatory Notes below

ShareThis

Add to favoritesClick here to add this page to your favourites or bookmarks.


 

Buy Introduction & Commission Agreement online

£39.00 + VAT

Your contract will be available for download from 'My Account'  immediately after payment.


Our Contracts Are:

  • Written by Expert Lawyers
  • Editable for Your Needs
  • Money-Saving
  • Ready to Download

How to Use ContractStore

You will find this contract in:

Agents, Reps & Resellers
Full Catalogue
Agency & Commission

 

You could also consider these related contracts:

A101Agency Agreement Template (favouring the Principal)
A110Services Agreement
A132Commission Agreement

You could also consider these related contracts:

A101Agency Agreement Template (favouring the Principal)
A110Services Agreement
A132Commission Agreement

You could also consider these related contracts:

A101Agency Agreement Template (favouring the Principal)
A110Services Agreement
A132Commission Agreement

You could also consider these related contracts:

A101Agency Agreement Template (favouring the Principal)
A110Services Agreement
A132Commission Agreement

You could also consider these related contracts:

A101Agency Agreement Template (favouring the Principal)
A110Services Agreement
A132Commission Agreement

You could also consider these related contracts:

A101Agency Agreement Template (favouring the Principal)
A110Services Agreement
A132Commission Agreement

 

 

 


 

What's in it?

Whilst for obvious reasons we can't show you the actual item before you purchase it, we can do the next best thing. We show you the explanatory notes that go with each contract and, in the case of books and forms, a brief summary. These will give you a good idea of the content of the document before you buy it. 

 

Explanatory Notes

This agreement is designed for use where one business agrees to introduce another business to its customers or clients in return for commission.  The contract sets out the basis for introductions, commission and payment terms, confidentiality, good faith and other terms.

The agreement is prepared in the form of a letter prepared on the headed notepaper of the company offering to make introductions.

The agreement is suitable for a wide range of businesses – e.g. a wedding planner who introduces a florist to her clients or a carpenter who introduces a decorator to his clients – and vice versa in each case! 

Dealing with the various paragraphs:

1. INTRODUCTIONS

This is very short and merely states that the introducer (referred to as the Firm) will provide introductions when it considers there is an appropriate opportunity.  Incidentally, the Data Protection Act may be relevant here and the firm should consider the implications of this legislation.

2. SERVICE PROVIDER’S ROLE

The party to whom the letter is written (referred to in these Notes as the service provider) will supply the introducer with brochures etc. and agrees with the introducer to perform his services so as to satisfy the client.  The introducer wants this assurance for his own benefit.  This paragraph also makes it clear that the service provider will have to have his own contract with the client – the introducer does not get involved in the service provider’s contractual arrangements.

3. COMMISSION

This sets out the percentage due to the introducer out of fees earned by the service provider.  If the commission is a fixed fee, the wording needs to be adjusted.  Also, we have some optional wording in square brackets that limits the commission arrangement to a 12 month period and wording that allows third party introductions to generate commission.  These should be removed or altered as appropriate.

4. PAYMENT

This assumes a monthly statement will be sent to the introducer who will then raise an invoice to be paid by the service provider within a specified period – 14 days is suggested here.  The introducer has the right to check the service provider’s accounts to verify the commission payments and to claim interest if a payment is not made on time.  Our clause proposes interest at the statutory rate: in the UK, if the contract does not specify an interest rate, the law allows an unpaid party to a contract to claim a high rate – 8 per cent above Base Rate under the Late Payment of Commercial Debts (Interest) Act. 

5. COMMENCEMENT AND DURATION

The agreement is an open-ended one with each party being able to terminate it on 30 days notice, but commission will continue to be paid for an agreed period after termination.  This is needed to protect the introducer from losing commission if the agreement is terminated by the service provider just after he has been given a valuable introduction.

6. CONFIDENTIALITY

This imposes strict confidentiality obligations on the service provider.

7. GOOD FAITH

Both parties agree to act in good faith and, in particular, the service provider is under a duty not to do anything that might be detrimental to the introducer.

8. THIRD PARTY ENQUIRIES

This gives the option for the service provider to be paid commission by the introducer if he gives business to the introducer.  The paragraph should be removed if it not appropriate but, if it is retained, it could be expanded to spell out the commission arrangements, which might be the same for both sides, if agreed.

9. INDEPENDENCE & AUTHORITY

This makes it clear that the parties are independent of each other and neither party can make commitments on the other’s behalf.

10. ASSIGNMENT AND SUBCONTRACTING

Consent is required before the service provider can assign or sublet any of his rights or obligations to a third party.

11. TERMINATION

The introducer has the right to terminate at any time if the service provider commits a breach of the terms or becomes insolvent.

12. INDEMNITY

Here, the service provider gives an indemnity to the introducer – i.e. agrees to make good all loss suffered by the introducer as a result of his default.

13. NO WARRANTY

The introducer makes it clear in this paragraph that he is not giving any guarantee as to the creditworthiness of any client introduced to the service provider, nor that any introductions will result from the agreement.  There is also a statement that the agreement is on a non-exclusive basis – i.e. the introducer could have similar agreements with competitors of the service provider.  If exclusivity is part of the deal, this wording should be changed.

14. NOTICES

Any notice under the agreement has to be in writing.

15. DISPUTES

The agreement provides for a three-stage process for dealing with any dispute that arises – direct negotiation, mediation and then the courts.  Our form says English law will apply, but this can be changed as appropriate.  We have free information on our website that deals with these issues: Z139 and Z140.

Once the wording is finalised, two copies of the letter should be signed and sent by the introducer to the service provider who should return one copy, countersigned and dated as indicated.

Back to top

 

 

 

 

Important Notice
This notice applies to all materials and information available on this website.

The contents of this site are protected by copyright. They may not be reproduced, distributed or published in any way without the consent of The ContractStore Ltd.

All information and materials on this site are provided on an 'as is' basis and are not intended in any way to be comprehensive. Any reader making use of this site does so at his/her own risk and readers are advised to take independent professional advice before acting on any information or materials found here. The ContractStore Ltd accepts no responsibility and gives no representations or warranties, express or implied, that any of the information and materials on this site are complete, accurate or free from errors or omissions.

Registered office: Acre House, 11/15 William Road, London NW1 3EW, United Kingdom
©ContractStore Ltd, 2012. All rights reserved.

Contact us | About us | CookiesCopyright notice | Terms and Conditions

 We use cookies to provide visitors with a good user experience. New regulations mean we need your consent for this use. For more information click here