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Publication date: 13.12.2022
Reading time: 11 minutes

What is the purpose of a commission agreement?

Under a commission agreement, one party (commission agent) undertakes, on behalf of the other party (principal), to complete one or more transactions for a fee on its own behalf, but at the expense of the principal.

Parties can be legal entities and individuals. At the same time, a third person with whom the commission agent concludes transactions in favor of the committent is not a party to the commission.

Sales commission agreements are a popular tool for formalizing relations between parties. After all, such agreements allow to optimize the taxation of the parties.

If it is necessary to draw up an individual commission agreement, we recommend using the Consultant legal services service to order a turnkey document.

A little more about the commission agreement

Returning to the issue of third parties, the commission agent is liable to the committent for third parties only if he: was reckless in choosing a third party (in the event of a litigation, the committent will have to prove this fact); vouched for the performance of the contract by a third party. Such a guarantee is called a delcreder.

The essential terms of the commission agreement, as well as any other business agreement, in accordance with Art. 180 HC of Ukraine is the subject, price and duration of the contract.

At the same time, the essential terms of the commission agreement, under which the commission agent undertakes to sell or buy property, are the conditions on this property and its price.

That is, the subject of the commission agreement is the commission by the commission agent of one or more transactions on his own behalf, but at the expense and on behalf of the committent.

At the same time, it should be noted that the commission agent is obliged to make transactions on the terms that are most favorable for the committent, and in accordance with his instructions. If there are no such indications in the commission agreement, the commission agent is obliged to make transactions in accordance with the customs of business transactions or the usual requirements. If the commission agent made a transaction on terms more favorable than those determined by the committent, the additional benefit received belongs to the committent.

The structure of the agreement is quite simple. However, the practice of lawyers is very often filled with support for the conclusion of such agreements. Indeed, it is not so easy to deal with all the provisions and legislative norms on your own.

Features of the commission agreement: what to look for?

After the transaction is completed on behalf of the committent, the commission agent must provide the committent with a report and transfer to him everything received under the commission agreement. The principal who has objections to the report of the commission agent must notify him of this within thirty days from the date of receipt of the report. If no such objections are received, the report is considered accepted.

In order to confirm the fact of the provision of commission agent services in practice, the parties also draw up an act of acceptance and transfer of the services provided, which is used for tax and accounting purposes. At the same time, it is important that these primary documents contain all the required details, in particular:

name of the document (form);

date and place of compilation;

the name of the enterprise on behalf of which the document is drawn up;

the content and scope of the business transaction; unit of measurement of a business transaction;

positions of persons responsible for the implementation of a business transaction and the correctness of its execution;

personal signature or other data allowing to identify the person who participated in the business transaction.

Therefore, if it is necessary to analyze the agency agreement or develop an individual document, we suggest using our legal services "Consultant". Our specialists will be able to best assist in the preparation of the document, and if necessary, create a completely new one in accordance with your situation.

Commission agreement template

The best specialists in the field of contract law are already ready to provide appropriate advice! We offer high quality services with comfortable service.

Purchasing a commission agreement template just got a whole lot easier! You can upload a document in a few simple steps:

Download the mobile application "Consultant";

After a short registration, you can find the required document in the "Documents" section;

By clicking the "Buy Template" button, you will immediately receive a link to download the document.

Our team cares about each client, so in case of problems, we will promptly help in resolving your issue!

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