The Commission Partnership Agreement is essential for businesses operating in Indonesia that wish to establish formal commission-based relationships with partners or agents. This document type is commonly used when a company wants to expand its market reach through third-party representatives without establishing direct employment relationships. The agreement must comply with Indonesian law, particularly the Civil Code (KUHPer) and Commercial Code (KUHD), and typically includes detailed provisions on commission calculations, payment terms, performance expectations, and territorial rights. It's particularly important in sectors where commission-based sales are common, such as insurance, real estate, and retail. The document provides legal protection for both parties while clearly defining their rights, obligations, and the commercial terms of their partnership.
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1. Parties: Identification of all parties to the agreement, including their legal status and registered addresses
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Scope: Terms of partnership appointment and scope of authorized activities
5. Term and Termination: Duration of the agreement and conditions for termination
6. Commission Structure: Detailed explanation of commission rates, calculation methods, and payment terms
7. Rights and Obligations: Specific rights and responsibilities of each party
8. Performance Targets: Minimum performance requirements and related metrics
9. Payment Terms: Terms and conditions for commission payments, including timing and method
10. Reporting Requirements: Required reports, frequency, and content specifications
11. Confidentiality: Protection of confidential information and trade secrets
12. Non-Competition: Restrictions on competing activities during and after the agreement
13. Intellectual Property: Ownership and usage rights of intellectual property
14. Governing Law: Specification of Indonesian law as governing law
15. Dispute Resolution: Process for resolving disputes between parties
1. Territory Restrictions: Used when the partnership is limited to specific geographic areas
2. Training and Support: Include when one party is required to provide training or ongoing support
3. Marketing and Promotion: Used when specific marketing obligations or restrictions apply
4. Insurance Requirements: Include when specific insurance coverage is required
5. Force Majeure: Used when parties want specific provisions for unforeseen circumstances
6. Data Protection: Include when partnership involves processing of personal data
7. Compliance with Anti-Corruption Laws: Used when partnership involves high-risk activities or government contracts
8. Currency and Exchange Rates: Include for international partnerships with cross-border payments
1. Schedule 1 - Commission Rates: Detailed breakdown of commission rates for different products/services
2. Schedule 2 - Territory Map: Geographical definition of the territory if applicable
3. Schedule 3 - Performance Metrics: Detailed performance targets and measurement criteria
4. Schedule 4 - Reporting Templates: Standard templates for required reports
5. Schedule 5 - Operating Procedures: Detailed procedures for day-to-day operations
6. Appendix A - Product/Service List: List of products or services covered by the agreement
7. Appendix B - Contact Details: Key contact persons and their details for both parties
8. Appendix C - Required Documentation: List of documents required for commission claims
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