Commission Agreement Template for Germany

A Commission Agreement outlines how sales agents or representatives earn their performance-based pay when selling products or services. Under German commercial law (Handelsgesetzbuch), these contracts specify the commission rate, payment terms, and sales territory for commercial agents and their principals.

The agreement must clearly define what triggers a commission payment - like closing a sale or signing up new customers. It also covers important details like reporting requirements, minimum sales targets, and how commissions are calculated. German law requires these agreements to include specific protections for commercial agents, including compensation rights when the contract ends.

Put a Commission Agreement in place before bringing sales representatives or agents on board to sell your products or services. This legally required document under German commercial law becomes essential when you need a clear framework for performance-based compensation, especially in industries like real estate, insurance, or retail.

Create this agreement when establishing new sales partnerships or updating existing ones. It protects both parties by clearly defining commission rates, payment schedules, and sales territories. Having this document from day one prevents disputes about earnings, helps track performance metrics, and ensures compliance with German agent protection regulations.

• Commission Contract Agreement: Standard agreement for direct sales employees, covering basic commission structures and performance metrics
• Commission Based Consulting Agreement: Specialized for consultants who receive success-based fees for business advisory services
• Middleman Commission Agreement: Designed for intermediaries who connect buyers and sellers, common in real estate and trade
• Sales Representative Contract: For exclusive territory representatives with detailed performance targets
• Independent Sales Rep Contract: Tailored for self-employed agents with flexible working arrangements

• Companies and Business Owners: Create and offer Commission Agreements to motivate sales performance and define payment structures
• Sales Representatives: Independent contractors or employees who earn commissions for successful sales, typically in retail or B2B sectors
• Commercial Agents (Handelsvertreter): Legally protected intermediaries under German law who represent companies and earn commission-based income
• Legal Counsel: Draft and review agreements to ensure compliance with German commercial law and agent protection regulations
• HR Managers: Implement and oversee commission structures, track performance metrics, and manage payment processes

• Basic Details: Gather full legal names, addresses, and tax IDs of both the company and sales representative
• Commission Structure: Define exact commission rates, calculation methods, and payment schedules
• Sales Territory: Map out specific geographical areas or customer segments for exclusive rights
• Performance Metrics: Establish clear sales targets, reporting requirements, and evaluation periods
• Legal Requirements: Include mandatory agent protections under German commercial law, especially regarding post-contract compensation
• Documentation System: Set up tracking methods for sales, commission calculations, and payment records

• Parties and Roles: Full legal identities of principal and agent, including their business relationship status
• Commission Terms: Detailed calculation methods, payment schedules, and conditions for earning commission
• Territory Rights: Clear definition of exclusive or non-exclusive sales territories
• Performance Obligations: Specific duties, targets, and reporting requirements for both parties
• Protection Clauses: Mandatory agent compensation rights under HGB (German Commercial Code)
• Term and Termination: Contract duration, notice periods, and post-termination obligations
• Data Protection: GDPR-compliant provisions for handling customer and sales data

A Commission Agreement differs significantly from an Agency Agreement in several key aspects, though both deal with business relationships. While Agency Agreements establish broader representation rights, Commission Agreements focus specifically on sales-based compensation structures.

• Scope of Authority: Agency Agreements grant broader powers to act on behalf of the principal, while Commission Agreements primarily govern sales and compensation terms
• Payment Structure: Commission Agreements focus exclusively on performance-based compensation, whereas Agency Agreements may include fixed fees plus optional commissions
• Legal Framework: Under German law, Commission Agreements fall under specific sections of the HGB dealing with sales representatives, while Agency Agreements cover wider commercial relationships
• Duration and Commitment: Agency Agreements typically establish longer-term, more comprehensive business relationships, while Commission Agreements can be more flexible and sales-focused