Document background
The MoU For Commission Agent is typically used in the initial stages of establishing a commission-based business relationship in Germany. This document serves as a preliminary agreement that outlines the intended commercial arrangement between a principal company and a commission agent, setting forth the basic terms while allowing flexibility for future negotiation. Governed by German law, particularly the Handelsgesetzbuch (HGB), it addresses key aspects such as commission structures, territorial rights, and reporting obligations. While non-binding in nature, it provides a foundation for the subsequent definitive agreement and helps ensure compliance with German commercial law requirements. This type of document is particularly useful when parties want to document their preliminary understanding while conducting due diligence or finalizing commercial terms.
