Agent Commission Agreement Template for Australia

The Agent Commission Agreement is essential for businesses operating in Australia that engage agents to promote, sell, or distribute their products or services. This document is particularly crucial when establishing formal commercial relationships where compensation is primarily commission-based. The agreement needs to comply with Australian federal and state legislation, including the Competition and Consumer Act 2010, relevant state Fair Trading Acts, and industry-specific regulations. It typically includes detailed provisions about commission calculations, payment terms, performance expectations, territorial rights, and both parties' obligations. The agreement is commonly used when engaging independent sales representatives, business development agents, or industry-specific agents, and can be adapted for both exclusive and non-exclusive agency arrangements.

1. Parties: Identifies and provides details of the principal and agent, including their legal status and contact information

2. Background: Sets out the context of the agreement, including the principal's business and desire to engage an agent

3. Definitions: Defines key terms used throughout the agreement, including 'Commission', 'Territory', 'Products/Services', and 'Customers'

4. Appointment and Scope: Establishes the agent's appointment, territory, and whether the appointment is exclusive or non-exclusive

5. Term: Specifies the duration of the agreement, including start date and any renewal provisions

6. Agent's Duties and Obligations: Details the agent's responsibilities, performance standards, and reporting requirements

7. Commission Structure: Outlines how commission is calculated, earned, and any conditions precedent

8. Payment Terms: Specifies when and how commissions will be paid, including payment frequency and method

9. Records and Reporting: Details record-keeping requirements and reporting obligations

10. Intellectual Property: Addresses the use of principal's trademarks, logos, and other IP

11. Confidentiality: Protects confidential information of both parties

12. Non-Compete and Non-Solicitation: Restricts agent's ability to compete or solicit customers/employees

13. Termination: Sets out grounds for termination and the process

14. Post-Termination Obligations: Specifies obligations after agreement ends, including commission entitlements

15. General Provisions: Standard boilerplate clauses including governing law, notices, and assignment