Document background
The Intermediary Commission Agreement is a crucial document for businesses operating in the Philippines who engage third parties to represent their interests, sell products, or provide services on their behalf. This agreement type is commonly used when a company (the Principal) wants to expand its market reach through external representatives without establishing direct employment relationships. The document addresses key aspects required under Philippine law, including commission calculations, payment terms, territorial rights, and compliance requirements. It's particularly important in the Philippine context due to specific local regulations governing agency relationships and commercial transactions under the Civil Code and Commercial Code. The agreement helps protect both parties' interests while ensuring clear accountability and performance metrics, making it essential for businesses utilizing commission-based sales or service structures.
