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Ely
Ely, Attorney
Category: Business Law
Satisfied Customers: 100052
Experience:  Counselor at Law.
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I have a question, our company had an employee that is

Customer Question

I have a question, our company had an employee that is separating but will become a commission only based consultant. We are working out the terms and conditions for his commission should he bring in viable business leads. For example, he has a lead to sell a couple of UAV's to a government customer, we manufacture those planes. Our idea is to give him a percentage of the initial sale, however if that same customer comes back 3 months later and requests more or another item we don't want to have to pay additional commissions. Is that acceptable if written into the agreement? Hope I made sense. We don't want to find out he's trying to sue for additional monies. Thank you! GM Btw, our headquarters is in PA.
Submitted: 9 months ago.
Category: Business Law
Expert:  Ely replied 9 months ago.

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Is that acceptable if written into the agreement?

Sure, why not? Provided that his licensure or your company's licensure or the licensure of the people that control the company does not disallow commissions, then something like this should be perfectly okay. (I know that this focuses on the commission itself, but I am getting to the limit of the commission below.)

A "limit" on the commission is perfectly acceptable provided the parties that are signatories to the commission contract agree. There is no UCC or statutory law that disallows this. A sample verbiage may be:

"Said commission shall not be void and shall not be earned if the customer of said commission orders [certain/any product and/or a total of $___ or more/less] within [time fame] of the original sale."

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