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The Commission Based Consulting Agreement is essential for businesses in the Philippines seeking to engage consultants on a performance-linked compensation model. This document type is particularly relevant when companies want to align consultant compensation with specific business outcomes or sales targets. It provides a legally compliant framework under Philippine law for establishing independent contractor relationships while protecting both parties' interests through detailed provisions on scope of work, commission calculations, payment terms, and intellectual property rights. The agreement is structured to clearly differentiate the consulting relationship from employment, addressing key requirements under Philippine labor laws and tax regulations. This document type is commonly used for sales consultants, business development specialists, and other professionals where performance-based compensation is appropriate.

1. Parties: Identification of the company and consultant, including complete legal names and addresses

2. Background: Context of the agreement and brief description of the company's business and consultant's expertise

3. Definitions: Key terms used throughout the agreement, including 'Services', 'Commission', 'Intellectual Property', etc.

4. Appointment and Scope of Services: Details of consultant's appointment and comprehensive description of services to be provided

5. Term and Termination: Duration of the agreement, renewal terms, and circumstances for termination

6. Commission Structure: Detailed explanation of commission calculations, payment terms, and conditions for earning commission

7. Payment Terms: Timeline for commission payments, method of payment, currency, and tax considerations

8. Independent Contractor Status: Clear statement of consultant's status as independent contractor, not an employee

9. Obligations of the Consultant: Consultant's duties, performance standards, and compliance requirements

10. Obligations of the Company: Company's responsibilities, including provision of necessary information and support

11. Intellectual Property Rights: Ownership and rights to work product, pre-existing IP, and created materials

12. Confidentiality: Protection of confidential information and trade secrets

13. Non-Competition and Non-Solicitation: Restrictions on competitive activities and solicitation of clients/employees

14. Representations and Warranties: Parties' assertions about their capacity and authority to enter agreement

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

16. General Provisions: Standard clauses including notices, amendments, severability, and entire agreement