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Consulting Commission Agreement for Switzerland

Consulting Commission Agreement Template for Switzerland

This Swiss-law governed Consulting Commission Agreement establishes a formal relationship between a principal and a consultant, detailing the provision of consulting services in exchange for commission-based compensation. The agreement complies with Swiss Code of Obligations requirements, particularly Articles 394-406 regarding service contracts (Auftrag) and Articles 425-439 concerning commission arrangements. It includes comprehensive provisions for service scope, commission structure, performance metrics, confidentiality, and intellectual property rights, while incorporating specific Swiss legal requirements regarding social security, data protection, and contract formation principles.

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What is a Consulting Commission Agreement?

The Consulting Commission Agreement is designed for business relationships under Swiss law where consultants provide professional services in exchange for commission-based compensation. This document is particularly relevant when engaging external expertise for business development, sales, or advisory services where compensation is tied to specific outcomes or transactions. The agreement ensures compliance with Swiss legal requirements, including the Swiss Code of Obligations' provisions on service contracts and commission arrangements. It addresses key aspects such as service scope, commission calculations, performance standards, and regulatory compliance, while providing flexibility to accommodate various business scenarios. This type of agreement is commonly used when establishing long-term consulting relationships where the consultant's compensation is directly linked to their success in generating business or achieving specific results for the principal.

What sections should be included in a Consulting Commission Agreement?

1. Parties: Identification and details of the contracting parties (principal and consultant)

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

3. Definitions: Key terms used throughout the agreement

4. Scope of Services: Detailed description of consulting services to be provided

5. Commission Structure: Details of commission calculation, rates, and payment terms

6. Term and Termination: Duration of the agreement and termination provisions

7. Obligations of the Consultant: Consultant's duties, responsibilities, and performance standards

8. Obligations of the Principal: Principal's duties, including provision of information and support

9. Payment Terms: Invoice procedures, payment schedules, and currency specifications

10. Confidentiality: Protection of confidential information and trade secrets

11. Intellectual Property Rights: Ownership and usage rights of created materials and pre-existing IP

12. Liability and Indemnification: Limitations of liability and indemnification obligations

13. General Provisions: Standard clauses including notices, amendments, and governing law

14. Signatures: Execution blocks for all parties

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

1. Non-Competition: Restrictions on competitive activities, used when consultant may have access to sensitive market information

2. Data Protection: Specific provisions for handling personal data, required when processing personal data under Swiss FADP

3. Insurance: Insurance requirements, recommended for high-value or high-risk consulting services

4. Force Majeure: Provisions for unforeseen circumstances, useful for long-term consulting arrangements

5. Compliance with Laws: Specific regulatory compliance obligations, important for regulated industries

6. Assignment and Subcontracting: Rights to transfer obligations or use subcontractors, needed for complex service arrangements

7. Dispute Resolution: Specific dispute resolution procedures, recommended for international agreements

8. Performance Metrics: Specific KPIs and performance standards, useful for complex or results-based arrangements

What schedules should be included in a Consulting Commission Agreement?

1. Schedule 1 - Service Description: Detailed specification of consulting services and deliverables

2. Schedule 2 - Commission Rates: Detailed commission calculations, thresholds, and examples

3. Schedule 3 - Service Levels: Performance standards and measurement criteria

4. Schedule 4 - Report Templates: Standard formats for activity and performance reporting

5. Schedule 5 - Key Personnel: List of key individuals involved in service delivery

6. Appendix A - Compliance Requirements: Specific regulatory or industry compliance requirements

7. Appendix B - Data Processing Agreement: Detailed data protection and processing requirements if applicable

8. Appendix C - Insurance Requirements: Specific insurance coverage requirements and minimums

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

Jurisdiction

Switzerland

Publisher

Genie AI

Cost

Free to use

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