New Jersey Association of Justice
American Bar Association
National Employers Lawyers Association

Sales Commission Agreements

Sales Commission Agreements

We understand the importance of negotiating fair and balanced Sales Commission Agreements on behalf of our Sales and Manufacturer’s Representative clients. We pride ourselves on making sure all our sales and manufacturer’s representative’s clients have comprehensive sales agreements in place so that they are legally protected when future issues arise, such as unpaid commissions, termination, non-solicitation/non-compete and product liability indemnification. Whether negotiating directly with the principal or providing behind the scenes advice and counsel to our clients who wish to negotiate their sales agreements directly with their principals, we assure that our sales and manufacturer’s representative clients have tight and comprehensive Sales Commission Agreements in place to limit exposure of potentially devastating impacts of being stuck with an unpaid commission.

Are Your Sales Commissions Legally Protected?

Here is a short list of questions that we believe should be considered in drafting a Sales Commission Agreement:

  1. Do you have a written Sales Commission Agreement with your principal manufacturer company?
  2. Does your Sales Commission Agreement specify the amount of commission, when the commission is earned and when payment of the commission is due?
  3. Are you legally protected if your principal terminates your sales relationship with you in order to contract with another competing independent sales representative?
  4. Do you have an agreement with your principal manufacturer company that affords you a commission for not just sales that you already earned but also for future sales that the principal will make due to your sales services?
  5. Does your Sales Commission Agreement contain an exclusivity provision, which prohibits your client from attempting to solicit a sale individually or with the assistance of another independent sales representative?
  6. Does your Sales Commission Agreement obligate the principal to indemnify you if you are sued for any kind of defective product or negligence on the part of the principal?
  7. Are you protected or have any legal recourse for future commissions if the principal sells its business to another company?

When deciding whether your Sales Commission Agreements adequately protect your rights and take into account possible future legal issues or ramifications, call our New Jersey Sales Representative Attorneys to discuss all your specific business needs in drafting your agreement.

DISCLAIMER: The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.
Client Reviews
We had a wrongful termination issue combined with a denial of unemployment insurance. Chris Eibeler was our primary attorney. His partner Bob Smith also consulted and gave us good advice. They were both so kind, caring, and professional. They guided us though a very tough time and a positive outcome versus a prior employer. They were also able to reverse our denial of unemployment insurance. I cannot recommend Smith and Eibeler highly enough. The entire staff is very professional, personable, and caring. Tom Wilson
I went to Smith Eibeler LLC for a last minute unemployment matter. Chris, Diane and his staff were very professional and easy to talk to. They provided knowledgeable insight and also kept me in the loop with the what was happening. I would not hesitate to go to him again. John Jung
Chris Eibeler (and the whole team) is very knowledgeable in all aspects of employment/unemployment here in NJ. They break down the most difficult aspects of the law, which allows you to conceptualize and better understand the complexities of the NJ Labor & Employment system. Smith Eibeler should be your first call regarding any Employment, workforce, or Labor questions here in New Jersey. I highly recommend them. Brian Allen
I approached Chris Eibeler regarding an unemployment case in early 2016. Him and his staff are some of the most professional people I have ever dealt with. The process took a while, but his approach to hard questioning helped me win my case. He knows how to get the job done and I am glad I went to him. I would recommend him to anyone in the future who asks for a lawyer. Thank you Chris! Tim F.
I highly recommend the office of Smith Eibeler for employment related issues, particularly anything related to restrictive covenants or post-employment contracts. I found Smith Eibeler via the web and cannot believe how fortunate I am to have found them. My case was handled by Bob Smith who represented me in a potential lawsuit by my former employer for violation of a post-employment contract (not a restrictive covenant per se). Bob was professional, friendly, understanding, and above all extremely helpful. Bob helped me avoid a lawsuit and was extremely knowledgeable in this field. I was thoroughly impressed with his prowess. Hopefully I will never have a legal issue related to employment again, but if I do, I will not hesitate to retain Smith Eibeler again! Gavin Tully

Results may vary depending on your particular facts and legal circumstances.