Draw Against Commission Agreement for Philippines

Draw Against Commission Agreement Template for Philippines

A Draw Against Commission Agreement under Philippine law is a legal contract that establishes a financial arrangement between a principal company and a commission-based representative. The agreement allows the representative to receive regular advance payments (draws) against future expected commissions, with provisions for reconciliation and repayment of any excess draws. The document details commission rates, calculation methods, minimum performance requirements, and reconciliation procedures, all while ensuring compliance with Philippine commercial and labor laws, including the Civil Code and relevant tax regulations.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Get template free
Upload to review

Your data doesn't train Genie's AI

You keep IP ownership of your docs

4.6 / 5
4.6 / 5
4.8 / 5

What is a Draw Against Commission Agreement?

The Draw Against Commission Agreement is essential for businesses operating in the Philippines that employ commission-based sales representatives or agents. This document type is particularly relevant when companies wish to provide their sales force with regular income through advances while maintaining a commission-based compensation structure. The agreement must comply with Philippine legislation, including the Civil Code of the Philippines and relevant labor laws, while clearly outlining the terms of the draw arrangement, commission calculations, reconciliation procedures, and repayment obligations. It's commonly used when recruiting new sales representatives who need income stability during their initial period, or for establishing long-term relationships with experienced sales professionals. The agreement protects both parties by clearly defining the financial relationship, performance expectations, and settlement terms.

What sections should be included in a Draw Against Commission Agreement?

1. Parties: Identification of the Principal and the Commission Agent with their complete legal names and addresses

2. Background: Context of the agreement, nature of the business relationship, and general purpose of the arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including 'Draw', 'Commission', 'Sales', 'Products/Services'

4. Appointment and Scope: Terms of appointment of the commission agent and scope of authority

5. Draw Amount and Payment: Specification of the draw amount, payment frequency, and payment method

6. Commission Structure: Detailed explanation of commission rates, calculation method, and earning conditions

7. Draw Recovery and Reconciliation: Process for reconciling draws against earned commissions and recovery of excess draws

8. Minimum Performance Requirements: Sales targets or minimum performance standards required to maintain the draw arrangement

9. Reporting and Documentation: Requirements for sales reporting, documentation, and commission calculations

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

11. Final Settlement: Process for final reconciliation and settlement of draws and commissions upon termination

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

13. Execution: Signature blocks and execution formalities

What sections are optional to include in a Draw Against Commission Agreement?

1. Non-Competition: Restrictions on the agent's ability to work with competitors, used when protecting market territory is important

2. Confidentiality: Provisions for protecting confidential information, used when sensitive business information will be shared

3. Training and Support: Details of any training or support provided by the principal, used when specific product knowledge or skills are required

4. Insurance Requirements: Insurance obligations of the agent, used when the nature of business requires specific coverage

5. Intellectual Property: Protection and usage of intellectual property, used when branding or proprietary information is involved

6. Territory Restrictions: Geographic or customer segment limitations, used when territory exclusivity is granted

7. Dispute Resolution: Alternative dispute resolution procedures, used when parties prefer mediation or arbitration over litigation

What schedules should be included in a Draw Against Commission Agreement?

1. Commission Rate Schedule: Detailed breakdown of commission rates, including any tiered structures or special promotions

2. Products/Services List: Comprehensive list of products or services covered by the agreement

3. Sales Territory Map: Geographic boundaries or customer segments assigned to the agent

4. Performance Metrics: Detailed performance standards and measurement criteria

5. Reporting Templates: Standard forms for sales reporting and commission calculations

6. Draw Calculation Examples: Examples illustrating how draws and commission reconciliation work

7. Required Documentation: List of required documents for sales verification and commission claims

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Philippines

Publisher

Genie AI

Sector

Sales

Cost

Free to use

Find the exact document you need

Commission Based Employment Agreement

A Philippine law-compliant employment agreement for commission-based workers, detailing compensation structure and employment terms.

Download

Salesperson Contract Commission Only

Philippine-compliant commission-only salesperson contract template outlining sales terms, compensation structure, and statutory benefits under Philippine law.

Download

Commission Only Agreement

A Philippine law-governed agreement establishing terms for commission-based sales representation, defining commission structure and performance requirements.

Download

Draw Against Commission Agreement

A Philippine-law governed agreement establishing terms for advance payments against future commissions between a company and its sales representatives.

Download

Salesperson Employment Contract

Philippine-compliant employment contract for sales professionals, covering compensation, targets, and territory assignments under local labor laws.

Download

Commercial Commission Contract

A Philippine law-governed agreement establishing commission-based sales or service arrangements between a principal and an agent, defining payment terms and responsibilities.

Download

Sales Commission Contract

A Philippine law-governed agreement establishing commission-based sales terms between a company and sales representative, including compensation structure and mutual obligations.

Download

Referral Agreement And Commission Agreement

A Philippine law-governed agreement establishing terms for business referrals and associated commission payments between parties.

Download

Commission Only Contract

A Philippine law-governed agreement establishing a commission-based compensation relationship between a company and sales representative, with no base salary.

Download

Benefits And Commission Contract

A Philippine law-governed agreement establishing commission-based employment terms, compensation structure, and comprehensive benefits package.

Download

Split Sales Commission Agreement

A Philippine law-governed agreement establishing terms for sharing sales commissions between multiple parties, including split percentages, payment terms, and compliance requirements.

Download

Lead Generation Commission Agreement

A Philippine-law governed agreement establishing terms between a company and lead generator for customer referrals and associated commission payments.

Download

Intermediary Commission Agreement

A Philippine law-governed agreement establishing terms and commission structure between a principal and intermediary for business representation services.

Download

Commission Based Consulting Agreement

A Philippine-law governed agreement establishing a commission-based consulting relationship, defining services, compensation, and independent contractor status.

Download

Joint Venture Commission Agreement

A Philippine law-governed agreement establishing a joint venture with commission-based arrangements between collaborating parties.

Download

Commission Guarantee Agreement

A Philippine law-governed agreement where a guarantor ensures payment of specified commission amounts to a beneficiary under defined conditions.

Download

Independent Sales Rep Contract

A Philippine law-governed contract establishing terms between a company and an independent sales representative, defining commission structures and independent contractor status.

Download

Commission Contract Agreement

A Philippine law-governed agreement establishing terms and conditions for commission-based business relationships between principals and agents.

Download

Independent Contractor Sales Commission Agreement

A Philippine law-governed agreement establishing terms and commission structure between a company and independent sales contractor.

Download

Commission Share Agreement

A Philippine law-governed agreement establishing terms and conditions for commission-based business relationships, including payment structures and mutual obligations.

Download

Sales Representative Contract

A Philippine law-governed agreement establishing terms and conditions between a company and its sales representative, including commission structure, duties, and territorial rights.

Download

Exclusive Agency Agreement Commission

A Philippine law-governed agreement establishing an exclusive agency relationship with defined commission structures and territorial rights.

Download
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it

2 Docs LeftAccess Now