Sample Memorandum of Agreement for Commission

A memorandum of agreement or MOA is a written contract between two parties that outlines the terms and conditions of their mutual understanding. In the world of business, this legal document is used to formalize agreements on a variety of issues, including commissions. A commission agreement is a contract between a business and an individual or organization, where the former agrees to pay the latter a percentage of sales revenue generated from their efforts.

Sample Memorandum of Agreement for Commission:

An MOA for commission should include the following essential elements:

1. Introduction: The agreement should start with a clear statement of the parties involved, the purpose of the agreement, and the effective date.

2. Commission Terms: The agreement should clearly specify the terms and conditions of the commission, including the percentage to be paid, the basis for determining the commission, and the payment frequency.

3. Responsibilites: The agreement should describe the responsibilities of both the business and the individual or organization receiving the commission. This includes the duties and obligations of each party, and the specific areas of responsibility for each.

4. Sales Targets and Thresholds: The MOA should outline agreed-upon sales targets, and the conditions for commission payment, including any thresholds that must be met before commission can be paid out.

5. Confidentiality and Non-disclosure: This section should outline the requirements for confidentiality and non-disclosure, including measures to protect sensitive or proprietary information.

6. Termination: The agreement should include provisions for termination, including the rights and obligations of each party upon termination, and the reasons for termination.

7. Dispute Resolution: This section should outline the process for resolving any disputes that may arise, whether through arbitration or mediation or through other means.


In summary, an MOA for commission is an important legal document that ensures transparency and fairness in business agreements. When drafting an MOA for commission, it is essential to ensure that the agreement covers all relevant issues and is written in clear and concise language. This helps to avoid misunderstandings and disputes, and ensures a mutually beneficial relationship between the parties involved.