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Sales Commission Agreement for Austria

Sales Commission Agreement Template for Austria

A comprehensive legal agreement governed by Austrian law that establishes and regulates the commercial relationship between a principal company and a sales agent or representative. The document outlines commission structures, payment terms, territorial rights, and obligations of both parties in accordance with the Austrian Commercial Code (UGB) and Commercial Agents Law (HVertrG). It includes specific provisions for commission calculations, reporting requirements, performance standards, and termination conditions while ensuring compliance with Austrian commercial and agency laws.

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Sales Commission Agreement

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What is a Sales Commission Agreement?

The Sales Commission Agreement is essential for businesses operating in Austria that engage external sales representatives or agents to promote and sell their products or services. This document is crucial for establishing clear terms of engagement, commission structures, and mutual obligations between the principal company and sales agents. It must comply with Austrian legislation, particularly the Unternehmensgesetzbuch (UGB) and Handelsvertretergesetz (HVertrG), which provide specific requirements for commercial agency relationships. The agreement typically covers territorial rights, commission calculations, payment schedules, performance expectations, and termination provisions. It's particularly important for companies expanding their sales force through independent agents rather than employed salespeople, and provides legal protection for both parties while ensuring transparent commercial terms.

What sections should be included in a Sales Commission Agreement?

1. Parties: Identification of the principal company and the sales agent, including full legal names, registration details, and addresses

2. Background: Context of the agreement, brief description of the principal's business, and the purpose of engaging the sales agent

3. Definitions: Key terms used throughout the agreement, including 'Territory', 'Products', 'Commission', 'Customers', etc.

4. Appointment and Territory: Formal appointment of the agent, specification of territorial rights, and whether they are exclusive or non-exclusive

5. Agent's Rights and Obligations: Detailed responsibilities of the agent, including sales targets, reporting requirements, and professional conduct expectations

6. Principal's Rights and Obligations: Principal's commitments, including providing product information, marketing materials, and support

7. Commission Structure: Detailed explanation of commission rates, calculation methods, and qualifying sales

8. Payment Terms: Commission payment schedule, payment methods, currency, and handling of disputed amounts

9. Term and Termination: Duration of the agreement, renewal terms, and grounds for termination

10. Post-Termination Provisions: Obligations after termination, including commission on pending sales and return of materials

11. Confidentiality: Protection of confidential information and trade secrets

12. Governing Law and Jurisdiction: Specification of Austrian law as governing law and jurisdiction for disputes

What sections are optional to include in a Sales Commission Agreement?

1. Non-Compete Clause: Restrictions on agent's activities during and after the agreement term - include when protecting specific market interests

2. Intellectual Property Rights: Protection of trademarks and brand usage - include when agent will be using principal's branded materials

3. Training and Support: Details of training provided by principal - include when comprehensive product knowledge is required

4. Insurance Requirements: Specific insurance coverage requirements - include for high-value products or regulated industries

5. Data Protection: GDPR compliance and data handling procedures - include when dealing with personal data

6. Sub-Agents: Rules for appointing sub-agents - include when allowing agent to build sales team

7. Minimum Performance Requirements: Specific sales targets and consequences - include when performance metrics are crucial

8. Marketing and Advertising: Guidelines for promotional activities - include when agent will conduct marketing

What schedules should be included in a Sales Commission Agreement?

1. Schedule 1 - Territory Definition: Detailed description of geographical territory or customer segments

2. Schedule 2 - Product List: Comprehensive list of products/services covered by the agreement

3. Schedule 3 - Commission Rates: Detailed commission structure, including any variations by product or customer type

4. Schedule 4 - Reporting Templates: Standard forms for sales reports and commission calculations

5. Schedule 5 - Sales Targets: Specific performance metrics and evaluation criteria

6. Appendix A - Required Documentation: List of documents required for commission claims

7. Appendix B - Customer Categories: Classification of customer types and associated commission rates

Authors

Alex Denne

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

Jurisdiction

Austria

Publisher

Genie AI

Document Type

Sales Agreement

Sector

Sales

Cost

Free to use
Relevant legal definitions







































Clauses




































Relevant Industries

Manufacturing

Wholesale Trade

Retail

Software and Technology

Financial Services

Insurance

Real Estate

Professional Services

Industrial Equipment

Consumer Goods

Pharmaceuticals

Telecommunications

Construction Materials

Automotive

Fashion and Apparel

Relevant Teams

Sales

Legal

Finance

Compliance

Commercial Operations

Business Development

Contract Administration

Sales Operations

Account Management

Commission Administration

Relevant Roles

Sales Director

Commercial Director

Business Development Manager

Sales Agent

Regional Sales Manager

Channel Manager

Sales Operations Manager

Legal Counsel

Contracts Manager

Chief Commercial Officer

Sales Administrator

Commission Specialist

Compliance Officer

Account Manager

Territory 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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