A verbal commission agreement is an agreement between two parties that outlines the terms of a commission payment. This type of agreement is typically made between a salesperson or agent and their employer or client. The agreement outlines the commission percentage, the sales quota, and the conditions under which the commission will be paid.
While verbal commission agreements are legal, they can be risky because they are not legally binding. If there is a disagreement about the commission payment, it can be difficult to prove the terms of the agreement. This is why many employers and clients require a written commission agreement.
If you are a salesperson or agent who is considering a verbal commission agreement, it is important to take steps to protect yourself. First, make sure you understand the terms of the agreement and ask for clarification if necessary. It is also a good idea to keep detailed records of your sales and commission payments.
If you are an employer or client who is considering a verbal commission agreement, it is important to provide clear guidelines and expectations to your salesperson or agent. This can help prevent misunderstandings and disputes down the line.
Overall, while verbal commission agreements are legal, they are not as secure as written agreements. It is important for both parties to understand the terms of the agreement and take steps to protect their interests.