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Draw Against Commission Agreement
"I need a Draw Against Commission Agreement for our real estate agency in Manila, where agents receive a monthly draw of 50,000 PHP against a 5% commission on property sales, with the agreement starting January 1, 2025."
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
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
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
Real Estate
Insurance
Financial Services
Retail
Manufacturing
Technology
Telecommunications
Pharmaceutical
Automotive
Consumer Goods
Direct Selling
Professional Services
Media and Advertising
Sales
Human Resources
Legal
Finance
Operations
Commercial
Compliance
Business Development
Compensation & Benefits
Accounting
Sales Director
Sales Manager
Sales Representative
Business Development Manager
Account Executive
Regional Sales Manager
Commission Agent
Sales Agent
Independent Contractor
Territory Manager
Channel Manager
Broker
Agency Manager
Compensation Manager
HR Director
Legal Counsel
Finance Director
Commercial Director
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