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A Commission Agreement is used when an individual or business, usually a salesperson, will sell for, or introduce clients to, a third party. They will then receive a commission for the sale or introduction.
Generating sales through commission is a great way to earn additional income, but it’s important to ensure that your rights are protected and that your revenue streams are secure. This is why you need a legally binding agreement to formalise this arrangement in New Zealand.
Why Do I Need A Commission Agreement in New Zealand?
Whether you are engaging an individual or business to sell your product or services, or you are the seller yourself, having a Commission Agreement in place in New Zealand will provide clarity on how commissions are calculated and establish the rights and obligations of all parties involved.
What Should Be Included?
In a New Zealand Commission Agreement, it’s typical to include clauses that address the following:
- Parties’ rights
- Parties’ obligations
- Calculation of commission
- Audit rights to ensure commissions are correctly paid
- Termination conditions
- Dispute resolution, in accordance with New Zealand law
Need Help in New Zealand?
Contact our friendly team at [email protected] or on 0800 002 184 to find out if a Commission Agreement is right for your situation in New Zealand.
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