Informal Commission Contract Template

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36 Free Commission Agreements (Sales, Real Estate, Contractor)
36 Free Commission Agreements (Sales, Real Estate, Contractor) from

In today’s business world, contracts play a crucial role in ensuring smooth and fair transactions between parties. One type of contract that is commonly used is an informal commission contract. This contract is typically used when one party wants to hire another party to perform a specific task or service in exchange for a commission or fee. In this article, we will discuss the key elements of an informal commission contract and provide a template that can be used as a starting point.

Table of Contents

Key Elements of an Informal Commission Contract

An informal commission contract typically includes several key elements to ensure clarity and enforceability. These elements include:

1. Parties: The contract should clearly identify the parties involved, including their names, addresses, and contact information.

2. Scope of Work: The contract should outline the specific task or service that the commission agent will be responsible for. This section should be detailed and include any relevant deadlines or milestones.

3. Commission Structure: The contract should specify how the commission agent will be compensated. This may include a percentage of sales, a flat fee, or a combination of both.

4. Duration: The contract should state the duration of the agreement, including any start and end dates. It should also include provisions for termination or renewal.

5. Confidentiality: If there are any confidential or proprietary information involved, the contract should include provisions to protect such information.

6. Dispute Resolution: The contract should outline the process for resolving any disputes that may arise during the course of the agreement.

7. Governing Law: The contract should specify which jurisdiction’s laws will govern the agreement.

Important Considerations

When drafting an informal commission contract, there are several important considerations to keep in mind:

1. Clarity: The contract should be clear and easy to understand. Avoid using technical jargon or complex language.

2. Consultation: It is always a good idea to consult with a legal professional to ensure that the contract complies with relevant laws and regulations.

3. Flexibility: The contract should allow for some flexibility to accommodate changes in circumstances or unforeseen events.

4. Documentation: It is important to keep a copy of the signed contract for future reference.

Template for an Informal Commission Contract

Below is a template for an informal commission contract that can be customized to fit specific needs:

Commission Contract

This Commission Contract (the “Contract”) is entered into by and between [Commission Agent’s Name] (the “Agent”) and [Client’s Name] (the “Client”) on [Date].

1. Scope of Work

The Agent agrees to perform the following services for the Client:

[Description of services]

2. Commission Structure

The Agent will be compensated as follows:

[Commission structure]

3. Duration

This Contract shall commence on [Start Date] and shall continue until [End Date], unless terminated earlier as provided in Section [X].

4. Confidentiality

Both parties agree to keep any confidential information obtained during the course of this Contract confidential and not disclose it to any third party.

5. Dispute Resolution

Any disputes arising out of or in connection with this Contract shall be resolved through mediation or arbitration in accordance with the laws of [Jurisdiction].

6. Governing Law

This Contract shall be governed by and construed in accordance with the laws of [Jurisdiction].

Tips for Writing an Effective Informal Commission Contract

When writing an informal commission contract, consider the following tips:

1. Be specific: Clearly outline the tasks, deadlines, and expectations to avoid any misunderstandings.

2. Use simple language: Write in plain English to ensure that all parties can easily understand the terms and conditions.

3. Include termination clause: Specify the conditions under which either party can terminate the contract.

4. Seek legal advice: If you are unsure about any aspect of the contract, it is recommended to consult with a legal professional.


An informal commission contract is a valuable tool for establishing clear expectations and protecting the rights of both parties involved. By including key elements and following best practices, you can create an effective contract that promotes a successful business relationship. Use the template provided as a starting point and customize it to meet your specific needs.

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