Agent Commission Agreement Template for Philippines

The Agent Commission Agreement is essential for businesses operating in the Philippines that engage independent agents or representatives to sell products or services on a commission basis. This agreement type is particularly important as it must comply with Philippine Civil Code provisions on agency (Articles 1868-1932), commercial law requirements, and tax regulations regarding commission payments. The document typically includes detailed commission structures, territory assignments, performance metrics, and reporting requirements. An Agent Commission Agreement helps prevent potential disputes by clearly defining the principal-agent relationship, commission calculations, payment terms, and mutual obligations while ensuring the arrangement doesn't inadvertently create an employer-employee relationship under Philippine labor laws. It's particularly crucial for businesses expanding their sales channels through independent representatives in the Philippine market.

1. Parties: Identification of the Principal and Agent, including complete legal names and addresses

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Formal appointment of the agent and detailed scope of authority

5. Territory and Exclusivity: Geographic area of operation and whether the appointment is exclusive or non-exclusive

6. Agent's Duties and Responsibilities: Detailed listing of the agent's obligations and required standards of performance

7. Principal's Duties and Responsibilities: Obligations of the principal, including support and information to be provided to the agent

8. Commission Structure: Detailed explanation of commission rates, calculation methods, and payment terms

9. Payment Terms: Timing of payments, currency, method of payment, and handling of expenses

10. Reporting Requirements: Requirements for sales reports, activity reports, and financial documentation

11. Term and Termination: Duration of the agreement and conditions for termination

12. Confidentiality: Protection of confidential information and trade secrets

13. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after the agreement

14. Intellectual Property: Usage rights and restrictions regarding trademarks, logos, and other IP

15. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes

16. General Provisions: Standard clauses including force majeure, notices, and amendments