The issue of sales rep commission disputes ranges from relatively minor to very significant. The compensation of a sales representative is a basic contract, and when some relationships are formed, the compensation contract may be an afterthought. If little money is at stake, the business may give little thought to the terms of the agreement. A few percent of the sales may be insignificant.
However, if the sales rep secures a very significant customer and the volume of sales increases substantially, that same percentage may leave the sales person with greater compensation than managers or officers of the business. This inevitably leads to conflict and problems.
Vague Agreements Lead To Expensive Disputes
Our attorney at The Law Offices of Joseph C. Bird, PLLC, is experienced with handling these disputes. Sometimes they arise from when there is no written contract in place and the parties have an “understanding.” Once real money is at stake, each side’s “understanding” begins to diverge.
Breach Of Sales Contract?
In other cases, there may be an agreement, but the terms of the contract are unclear or vague and, again, misunderstandings lead to disagreements, claims of a breach and eventually to litigation. As with most things, it is better to take the time and write a comprehensive sales compensation agreement that anticipates likely issues than it is to rely on an inadequate agreement that develops into time-consuming, expensive litigation.
Is It In The Contract?
Having a well-thought out commission contract before there are substantial amounts of money at stake is critical. Both sides should insist on such an agreement, as vague handshakes deals may seem adequate, but once a dispute arises, everyone’s memory diverges, and everything becomes more expensive.
Our employment lawyer can help draft an agreement that may prevent some of these issues. If a disagreement develops, our decades of experience with these matters allows us to provide knowledgeable litigation counsel or assistance with the arbitration process.
Contact Our Firm
For experienced assistance involving issues related to disputes involving sales commissions in Michigan, call our Birmingham office at 248-658-8590 and find out how we can help you or use our contact form.
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