The Simple Sales Commission Agreement is essential for businesses operating in Switzerland that engage external sales representatives or agents to promote and sell their products or services. This document, governed by Swiss law and particularly the Swiss Code of Obligations, establishes the commercial relationship between a principal company and its sales representatives, defining how commissions are earned, calculated, and paid. It's commonly used when companies want to expand their sales reach without hiring full-time employees, offering a performance-based compensation structure. The agreement includes critical elements such as territory definitions, sales targets, reporting requirements, and commission structures, while ensuring compliance with Swiss commercial and agency laws. It's particularly valuable for businesses seeking flexible sales force solutions while maintaining clear legal and operational frameworks.
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1. Parties: Identification of the principal company and the sales agent/representative, including full legal names, registration details, and addresses
2. Background: Context of the agreement, brief description of the principal's business, and purpose of engaging the sales representative
3. Definitions: Key terms used throughout the agreement, including 'Products', 'Territory', 'Customers', 'Commission', 'Sales', etc.
4. Appointment and Scope: Formal appointment of the sales representative, nature of the relationship (non-exclusive/exclusive), and territorial scope
5. Term and Termination: Duration of the agreement, renewal provisions, and circumstances for termination
6. Commission Structure: Base commission rates, calculation methods, and timing of commission payments
7. Payment Terms: Invoice requirements, payment schedule, currency, and method of payment
8. Representative's Obligations: Core duties, sales targets, reporting requirements, and professional conduct expectations
9. Principal's Obligations: Support to be provided, product information, training, and marketing materials
10. Intellectual Property: Usage rights for trademarks, logos, and marketing materials
11. Confidentiality: Protection of business information and trade secrets
12. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction for disputes
1. Non-Compete: Restrictions on representing competing products, used when protecting market position is crucial
2. Customer Protection: Provisions protecting existing customer relationships, relevant for territories with established customers
3. Performance Targets: Specific sales targets and consequences for missing them, used in performance-based relationships
4. Training Requirements: Mandatory training obligations, relevant for technical or complex products
5. Insurance: Required insurance coverage, important for high-value products or regulated industries
6. Data Protection: FADP compliance provisions, necessary when handling significant customer data
7. Post-Termination Obligations: Duties after agreement ends, important for protecting business interests
8. Force Majeure: Provisions for unforeseeable circumstances, relevant in volatile markets or regions
1. Schedule 1 - Products: List of products/services covered by the agreement, with descriptions and pricing
2. Schedule 2 - Commission Rates: Detailed commission structure, including any variations by product or customer type
3. Schedule 3 - Territory: Detailed description of geographical territory and any excluded accounts
4. Schedule 4 - Sales Targets: Specific performance metrics and evaluation criteria
5. Schedule 5 - Reporting Templates: Standard forms for sales reports and commission calculations
6. Appendix A - Customer List: List of existing customers and any special arrangements
7. Appendix B - Marketing Guidelines: Rules for use of principal's branding and marketing materials
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