Commission Sales Agreement

Commission Sales Agreement in International Trade

Meaning of Commission Sales Agreement, according to the Dictionary of International Trade (Global Negotiator): A type or contract, whereby a person or company acts as a sales agent on behalf of the exporting company (principal), introducing its products to potential buyers in the external market, in exchange for a commission based on the value of the business deals arranged and paid to the principal. The mechanism of commission agent or intermediary is therefore very useful to companies that are launching their export operations. This type of contract is ideal for small companies with little or no experience in international trade, as it allows them to access international markets without having to make large investments. Everything is left in the hands of the agent. See distributor; sales representative. Model of International Sales Commission Agreement.