The Commission Agreement Between Seller And Agent is a crucial document for businesses operating in Hong Kong that wish to expand their sales reach through external agents or representatives. This agreement is commonly used when a company (the seller) wants to engage independent sales professionals or firms to market and sell their products or services without creating an employment relationship. The document addresses key aspects including commission structures, performance metrics, territorial rights, and compliance with Hong Kong regulations. It's particularly important in industries where commission-based sales are common, and it helps protect both parties by clearly defining their rights, obligations, and the commercial terms of their relationship. The agreement must comply with Hong Kong's legal framework, including the Contract Ordinance and Agency Ordinance, while considering industry-specific regulations where applicable.
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1. Parties: Identifies and provides full details of the Seller and Agent, including registration numbers and addresses
2. Background: Explains the context of the agreement, including the Seller's business and desire to engage the Agent
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Scope: Details of the Agent's appointment, territory, and whether exclusive or non-exclusive
5. Agent's Rights and Obligations: Comprehensive list of the Agent's responsibilities, duties, and authorized activities
6. Seller's Rights and Obligations: Outlines the Seller's commitments, support, and obligations to the Agent
7. Commission Structure: Detailed explanation of commission rates, calculation methods, and payment terms
8. Payment Terms: Specifics about payment timing, method, currency, and handling of expenses
9. Term and Termination: Duration of the agreement and circumstances for termination
10. Confidentiality: Provisions for handling confidential information and trade secrets
11. Intellectual Property: Protection and usage rights of trademarks, logos, and other IP
12. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after the agreement
13. Representations and Warranties: Standard warranties from both parties
14. Liability and Indemnification: Allocation of risks and responsibilities between parties
15. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Performance Targets: Include when specific sales targets or KPIs are required
2. Training and Support: Include when the Seller provides specific training or support services
3. Marketing and Promotion: Include when detailing specific marketing responsibilities and cost-sharing
4. Insurance Requirements: Include when specific insurance coverage is required from the Agent
5. Compliance with Industry Regulations: Include for regulated industries like financial services or real estate
6. Sub-Agents: Include if the Agent is permitted to appoint sub-agents
7. Data Protection: Include detailed data protection clauses when handling sensitive customer data
8. Force Majeure: Include specific force majeure provisions for high-risk territories
9. Dispute Resolution: Include specific arbitration or mediation procedures if desired
1. Commission Rates Schedule: Detailed breakdown of commission rates for different products/services
2. Territory Definition: Detailed description of geographical territory or market segment
3. Product/Service List: Comprehensive list of products/services covered by the agreement
4. Performance Metrics: Specific KPIs and measurement criteria
5. Approved Marketing Materials: List of approved marketing materials and usage guidelines
6. Reporting Templates: Standard forms for regular reporting requirements
7. Customer List: List of existing customers or excluded accounts if applicable
8. Standard Operating Procedures: Detailed procedures for order processing and customer handling
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