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Software Sales Commission Agreement Template for England and Wales

A Software Sales Commission Agreement is a legally binding document governed by English and Welsh law that establishes the terms and conditions under which a sales representative will sell software products on behalf of a software company. The agreement details commission structures, sales territories, performance expectations, and payment terms while ensuring compliance with UK commercial agent regulations and employment laws. It provides protection for both the principal company and the sales representative by clearly defining rights, obligations, and compensation arrangements.

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What is a Software Sales Commission Agreement?

The Software Sales Commission Agreement is essential for businesses operating in the UK software industry who engage sales representatives to market and sell their products. This agreement, governed by English and Welsh law, provides a comprehensive framework for the commercial relationship between software companies and their sales representatives. It covers crucial aspects such as commission calculations, payment terms, performance metrics, territorial rights, and compliance with relevant UK regulations. The document is particularly important for protecting both parties' interests and ensuring clear understanding of responsibilities and compensation structures.

What sections should be included in a Software Sales Commission Agreement?

1. Parties: Identification of contracting parties, including full legal names and addresses

2. Background: Context of the agreement, including the nature of the software business and sales arrangement

3. Definitions: Key terms used throughout the agreement including Software Products, Territory, Commission, Net Sales, etc.

4. Appointment: Terms of appointment as sales representative, including exclusivity status and relationship nature

5. Commission Structure: Detailed provisions for commission calculation, payment terms, and conditions for earning commission

6. Territory and Products: Definition of geographical area and specific software products covered under the agreement

7. Obligations: Responsibilities and duties of both parties, including sales targets and reporting requirements

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

9. Governing Law: Specification of English and Welsh law as governing law and jurisdiction

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

1. Non-Compete: Restrictions on competing activities during and after the agreement term

2. Training: Requirements for product training and ongoing professional development

3. Performance Targets: Specific sales targets and consequences of not meeting them

4. Intellectual Property: Protection and usage rights of software IP and related materials

5. Data Protection: Compliance with UK GDPR and data protection requirements

What schedules should be included in a Software Sales Commission Agreement?

1. Schedule 1 - Commission Rates: Detailed commission structure, calculations, and payment terms

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

3. Schedule 3 - Territory Map: Detailed definition and map of sales territory

4. Schedule 4 - Sales Targets: Specific performance metrics and targets

5. Schedule 5 - Reporting Templates: Standard forms for sales reporting and commission calculations

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

England and Wales

Publisher

Genie AI

Sector

Sales

Cost

Free to use

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