When it comes to business transactions, having a memorandum of agreement (MOA) can help ensure that all parties involved are on the same page. This is especially important when it comes to commission-based transactions. A commission MOA lays out the terms and conditions regarding the compensation that one party will receive for the sale of another party`s products or services.
Here`s a sample letter of memorandum of agreement for commission to give you an idea of what should be included:
[Name of Company/Individual]
Dear [Name of Company/Individual],
This Memorandum of Agreement (MOA) is entered into on [Date] by and between [Name of Company/Individual] (“Seller”) and [Name of Company/Individual] (“Agent”).
The Seller agrees to pay the Agent a commission as a percentage of the total sales generated by the Agent. The commission rate will be [insert percentage] of the total sales generated by the Agent.
The Agent agrees to use his/her best efforts to promote and sell the Seller`s products/services to potential customers. The Agent will be responsible for all expenses incurred in carrying out this agreement, including but not limited to travel expenses, phone expenses, and any other expenses directly related to the promotion and sale of the Seller`s products/services. The Agent shall submit a monthly report of all expenses incurred which shall be reimbursed by the Seller.
The term of this agreement shall be for [insert duration of agreement] from the date of its execution. This agreement may be terminated by mutual agreement of the parties, by either party giving [insert notice period] days written notice to the other party, or immediately by either party in the event of material breach of this agreement by the other party.
This MOA constitutes the entire agreement between the parties and supersedes all prior negotiations, representations, and understandings between the parties. This agreement may not be amended except by written agreement signed by both parties.
This MOA shall be governed by and construed in accordance with the laws of [insert governing state, province, or country] and any legal action arising out of or in connection with this agreement shall be brought in the courts of [insert governing state, province, or country].
If the foregoing meets with your approval, please sign below and duplicate for our records.
[Name of Company/Individual – Seller]
[Name of Company/Individual – Agent]
As a professional, it is important to note that when using a sample letter of memorandum of agreement for commission, you should always personalize it and make sure it is applicable to your specific business needs. Additionally, including relevant keywords in your MOA can help improve search engine rankings and drive traffic to your website.