Legal Question in Business Law in California

Commission Earned

Are commission earned at time of booking a Purchase order as outlined in a sale representation agreement - or - are they earned at time of shipment of product, which would and can be ''any'' amount different than the one specified in the Sales Rep Contract


Asked on 4/29/09, 12:31 pm

3 Answers from Attorneys
Glenn Truitt Truitt Law Group

Re: Commission Earned

If the Sales Representation Agreement is NOT specific on this matter, than the first thing to be done to resolve the ambiguity would be to look through the agreement to see if there is any clear intent that can be determined from the rest of the contract language. If that isn't dispositive, you could then look at parol evidence (an extrinsic exception to the parol evidence rule). (http://www.answers.com/topic/parol-evidence-rule)

Ultimately, unresolvable ambiguities where there are reasonably viable alternative interpretations are to be construed against the drafter - meaning not YOU.

I'd be happy to help out with this further - please feel free to contact me through my site!

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Answered on 4/29/09, 12:51 pm
Terry A. Nelson Nelson & Lawless

Re: Commission Earned

Determined by company policy.

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Answered on 4/29/09, 2:40 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Commission Earned

Determined by the contract between the company and the salesperson.... which ordinarily would reflect company policy.....but if it does not, then policy must yield to the contract.

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Answered on 4/29/09, 9:12 pm


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