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Businesses using commission-only or base-plus-commission sales reps

Commission Sales Agent Agreement

Put a rep on the road — commission terms, when commission is earned, territory and conduct.

Quick answer

A commission sales agent agreement is a written agreement used by businesses using commission-only or base-plus-commission sales reps in South Africa. This template covers appointment & territory, commission calculation, when commission is earned, no authority to bind the principal and more, drafted with POPIA, the CPA and the ECT Act in mind.

The problem it solves: Disputes over who gets paid what, when commission is 'earned', and reps who over-promise.

R199

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What's inside

  • 01Appointment & territory
  • 02Commission calculation
  • 03When commission is earned
  • 04No authority to bind the Principal
  • 05Expenses & legal conduct
  • 06Term & notice
  • 07POPIA data-protection clause

Good to know

Commission-only — is that legal?+

Yes, as long as the agent is genuinely independent, not an employee. This agreement records that status.

When is commission 'earned'?+

You choose — on signature, delivery or when you're paid. The agreement states it so there's no argument.

Is this legal advice?+

No. It's a professionally structured starting point. For high-value or unusual deals, have an attorney review your completed document.

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