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Marketing Commission Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Marketing Commission Agreement

"I need a Marketing Commission Agreement for my tech company based in Riyadh, appointing a local marketing agent to promote our cloud computing services in Saudi Arabia's Western Region, with a 15% commission structure and performance targets starting from March 2025."

Document background
The Marketing Commission Agreement is essential for businesses operating in Saudi Arabia who wish to engage marketing agents to promote their products or services. This document is specifically structured to comply with Saudi Arabian commercial law, including the Commercial Agencies Law and relevant Sharia principles. It's particularly important when establishing formal marketing relationships where commission-based compensation is involved. The agreement covers crucial aspects such as territory rights, commission calculations, payment terms, marketing obligations, and compliance requirements. It's designed to protect both parties' interests while ensuring adherence to local regulations, including requirements for commercial agency registration with the Ministry of Commerce where applicable.
Suggested Sections

1. Parties: Identification of the Principal and Marketing Agent, including full legal names, addresses, and commercial registration details as required by Saudi law

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Key terms used throughout the agreement, including specific marketing terminology and commission-related definitions

4. Appointment and Scope: Terms of the Marketing Agent's appointment, territory, and scope of authorized marketing activities

5. Marketing Agent's Obligations: Detailed responsibilities including marketing activities, reporting requirements, and compliance with Saudi regulations

6. Principal's Obligations: Support, materials, and information to be provided by the Principal

7. Commission Structure: Detailed explanation of commission calculations, payment terms, and conditions for commission eligibility

8. Payment Terms: Payment mechanics, currency, and timing of commission payments in compliance with Sharia principles

9. Compliance: Requirements for adherence to Saudi laws, including advertising regulations and Sharia principles

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

11. Confidentiality: Protection of confidential information and trade secrets

12. Non-Competition and Non-Solicitation: Restrictions on competitive activities and client solicitation

13. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction for dispute resolution

14. General Provisions: Standard clauses including force majeure, notices, and amendment procedures

Optional Sections

1. Intellectual Property Rights: Required when marketing activities involve use of trademarks, logos, or other IP

2. Training and Support: Include when the Principal provides specific training or support systems

3. Performance Targets: Add when agreement includes specific marketing or sales targets

4. Digital Marketing Provisions: Include for agreements involving online marketing activities

5. Sub-agents: Required when the Marketing Agent is permitted to appoint sub-agents

6. Insurance: Include when specific insurance coverage is required

7. Data Protection: Required when marketing activities involve collection or processing of personal data

8. Marketing Budget: Include when Principal provides or requires specific marketing budget allocations

Suggested Schedules

1. Commission Rates Schedule: Detailed breakdown of commission rates for different products/services

2. Territory Definition: Detailed description of geographical areas covered by the agreement

3. Approved Marketing Materials: List of pre-approved marketing materials and guidelines

4. Reporting Templates: Standard forms for activity and commission reporting

5. Product/Service Description: Detailed description of products/services to be marketed

6. Performance Metrics: Specific KPIs and measurement criteria

7. Compliance Checklist: Checklist of Saudi regulatory requirements and compliance measures

8. Contact Details: Key contact persons and escalation matrix for both parties

Authors

Alex Denne

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

Relevant legal definitions








































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Relevant Industries

Retail

Consumer Goods

Technology

Healthcare

Real Estate

Financial Services

Manufacturing

Automotive

Telecommunications

Professional Services

Education

Food and Beverage

Hospitality

Construction

Energy

Relevant Teams

Legal

Marketing

Sales

Business Development

Finance

Compliance

Commercial Operations

Partner Relations

Contract Administration

Executive Leadership

Relevant Roles

Sales Director

Marketing Manager

Business Development Manager

Commercial Director

Legal Counsel

Compliance Officer

Chief Marketing Officer

Regional Sales Manager

Channel Manager

Partnership Manager

Contract Manager

Chief Commercial Officer

Marketing Agent

Business Owner

General Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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