Commissioner Agreement Definition

Commissioner Agreement Definition: A Comprehensive Guide for Businesses

A commissioner agreement, also known as a commission agreement, is a legal contract between two parties that outlines the terms and conditions of a commission-based relationship. The agreement is typically used in situations where one party, known as the agent or the commissioner, is authorized to sell goods or services on behalf of the other party, known as the principal or the supplier.

The commissioner agreement defines the expectations and responsibilities of both parties, and it establishes the commission rate that the agent will earn for each sale made. The agreement can be used in a variety of industries, from real estate to insurance, and it can be customized to meet the specific needs of each business.

Key Components of a Commissioner Agreement

While the details of a commissioner agreement can vary depending on the industry and the nature of the business relationship, there are certain key components that are often included in these agreements. These include:

1. Scope of the Agreement: This section of the agreement defines the specific goods or services that the agent will sell on behalf of the principal. It also outlines the geographic area where the agent is authorized to sell.

2. Commission Rate: The commission rate is the percentage of each sale that the agent will earn as a commission. This section of the agreement defines the commission rate and any other terms related to commission payments, such as when the agent must be paid and how the commission will be calculated.

3. Exclusivity: An exclusivity clause may be included in the agreement to prevent the principal from working with other agents or to prevent the agent from working with other principals.

4. Termination: This section of the agreement outlines the conditions under which the agreement can be terminated, such as if one party breaches the agreement or if the agreement expires.

5. Confidentiality: A confidentiality clause may be included to protect any confidential information that is exchanged between the parties as part of the agreement.

Benefits of Using a Commissioner Agreement

Using a commissioner agreement can provide a number of benefits for businesses. Some of the key benefits include:

1. Clear Expectations: By outlining the scope of the agreement and the responsibilities of each party, a commissioner agreement can help to establish clear expectations and prevent misunderstandings.

2. Protection: A commissioner agreement can help to protect both parties by defining the terms of the relationship and outlining the consequences of any breaches of the agreement.

3. Flexibility: Commissioner agreements can be tailored to meet the specific needs of each business, making them a flexible tool for establishing commission-based relationships.


In conclusion, a commissioner agreement is a legal contract that establishes a commission-based relationship between two parties. By defining the expectations and responsibilities of each party, outlining the commission rate, and establishing other terms related to the relationship, a commissioner agreement can provide businesses with clarity, protection, and flexibility. If you are considering entering into a commission-based relationship with another party, it is important to consult with a legal professional to ensure that your commissioner agreement meets all necessary legal requirements and provides the protections that you need.