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Commissioned Service Contract

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COMMISSIONED SERVICE CONTRACT

This Commissioned Service Contract (the "Agreement") is entered into on by and between Client Name: , with principal address: , and Contractor Name: , with principal address: .

RECITALS

WHEREAS, the Client desires to commission certain services and deliverables described herein; and

WHEREAS, the Contractor represents that it has the skill, experience, personnel and facilities necessary to perform the services on the terms and conditions set forth in this Agreement; and

WHEREAS, the parties wish to set forth their respective rights and obligations with respect to such commissioned services and deliverables.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

1. DEFINITIONS

1.1 "Services" means the services to be provided by Contractor as set forth in Section 2 and in the Scope of Services. 1.2 "Deliverables" means the tangible items, reports, or materials to be delivered to Client as described in Section 3. 1.3 "Acceptance" means Client's written or documented approval of Deliverables in accordance with Section 3.2.

2. SCOPE OF SERVICES

2.1 Contractor shall perform the commissioned services described below and in any attached exhibit. The Services shall be performed in a professional and workmanlike manner in accordance with industry standards.

3. DELIVERABLES, MILESTONES AND ACCEPTANCE

3.1 Milestones and due dates (the parties may add additional milestones by written amendment signed by both parties):

3.2 Acceptance. Client shall have a period of days from delivery to inspect Deliverables and either provide written Acceptance or a written list of deficiencies. If no deficiencies are provided within the acceptance period, Deliverables will be deemed accepted.

4. COMPENSATION AND PAYMENT

4.1 Compensation. Client shall pay Contractor the total compensation set forth below in accordance with the payment schedule. All amounts are in U.S. dollars unless otherwise stated.

4.2 Late Payments. Any undisputed late payment shall accrue interest at a rate of or the maximum permitted by law, whichever is lower.

5. EXPENSES

Client will reimburse Contractor for reasonable, pre-approved out-of-pocket expenses incurred in connection with performance of the Services. Reimbursable expenses shall not exceed without prior written approval.

6. INTELLECTUAL PROPERTY

6.1 Ownership. Unless otherwise agreed in writing, the parties agree that ownership of the final Deliverables shall be: The parties shall initial selection in any attached schedule. If Contractor retains ownership, Contractor grants Client a non-exclusive, perpetual license limited to the intended use described in this Agreement.

6.2 Pre-existing Materials. Contractor shall identify any pre-existing materials incorporated into the Deliverables and, unless otherwise agreed, grants Client a non-exclusive license to use such pre-existing materials only as part of the Deliverables.

7. CONFIDENTIALITY

7.1 Each party shall maintain in confidence all confidential information disclosed by the other party and shall not use or disclose such information except as necessary to perform its obligations under this Agreement. Confidentiality obligations survive termination for a period of three (3) years unless otherwise required by law.

8. REPRESENTATIONS, WARRANTIES AND DISCLAIMER

Contractor represents and warrants that (a) it has the right and authority to enter into this Agreement and to grant the rights herein; (b) the Services will be performed in a professional manner consistent with industry standards; and (c) to the best of Contractor's knowledge, the Deliverables will not infringe third-party intellectual property rights. EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN THIS SECTION, CONTRACTOR DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED.

9. INDEMNIFICATION

Each party shall defend, indemnify and hold harmless the other party from and against any third-party claims, liabilities, costs and expenses (including reasonable attorneys' fees) resulting from the indemnifying party's breach of this Agreement, negligence or willful misconduct.

10. INSURANCE

Contractor shall maintain commercial general liability and professional liability insurance in amounts sufficient to cover Contractor's obligations under this Agreement, with minimum limits of or as otherwise reasonably requested by Client.

11. INDEPENDENT CONTRACTOR

Contractor is an independent contractor and not an employee, agent or partner of Client. Contractor is solely responsible for all taxes, withholdings and other statutory or contractual obligations of any sort.

12. TERM AND TERMINATION

12.1 Term. This Agreement commences on the Effective Date and continues until completion of the Services unless earlier terminated as provided below.

12.2 Termination for Convenience. Either party may terminate this Agreement for convenience upon days' prior written notice to the other party.

12.3 Termination for Cause. Either party may terminate immediately upon written notice if the other party materially breaches this Agreement and fails to cure within thirty (30) days after receipt of written notice specifying the breach.

13. NOTICES

All notices under this Agreement shall be in writing and delivered to the addresses set forth below or to such other address as a party may designate by notice in accordance with this Section.

14. AMENDMENT AND WAIVER

No amendment, modification or waiver of any provision of this Agreement shall be effective unless in writing and signed by both parties. The waiver by either party of any breach shall not operate or be construed as a waiver of any subsequent breach.

15. GOVERNING LAW; VENUE

This Agreement shall be governed by and construed in accordance with the laws of the state of , without regard to its conflict of laws principles. The parties agree that exclusive venue for any dispute shall be the state and federal courts located within that state.

16. ENTIRE AGREEMENT; SEVERABILITY; COUNTERPARTS

16.1 Entire Agreement. This Agreement, together with any exhibits or schedules expressly incorporated herein, constitutes the entire agreement between the parties and supersedes all prior and contemporaneous agreements, proposals, or communications, whether written or oral, relating to the subject matter hereof.

16.2 Severability. If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

16.3 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

SIGNATURES

Client:

By:

Date:

Contractor:

By:

Date:

Enter text✕

What the Commissioned Service Contract Is

A Commissioned Service Contract is a written agreement that sets out the scope, compensation, and deliverables when an individual or firm performs services for a commissioning party. It defines who is engaged, the services to be delivered, performance timelines, payment terms including commission formulas or percentages, and conditions for termination. The contract often addresses intellectual property, confidentiality, indemnity, and dispute resolution. Properly completed and signed by authorized parties, the document creates enforceable obligations under contract law and can be executed electronically under U.S. e-signature statutes when the parties consent.

Why a Clear Commissioned Service Contract Matters

A clear contract reduces ambiguity about duties, payment triggers, and ownership rights, lowering the risk of disputes and collection problems. It also documents mutual consent and the exact basis for commissions, which is useful if enforcement or audits become necessary under state law or federal statutes.

Why a Clear Commissioned Service Contract Matters

Who Typically Prepares and Signs These Contracts

Parties should confirm signatory authority and retention procedures before execution to avoid later challenges to enforceability.

  • Hiring managers and procurement teams: Use contracts to define deliverables and payment milestones for vendors and agents.
  • Sales and broker personnel: Formalize commission rates, splitting rules, and closing conditions for compensated referrals.
  • Legal and finance departments: Review tax, withholding, and IP implications; ensure compliance with internal policies.

Core Clauses to Include in a Professional Contract

A well-structured Commissioned Service Contract is modular: it should identify parties, define services, set commission calculation and payment timing, and allocate risk clearly.

Parties

Full legal names and business types for each contracting party, including primary contact and address for notices.

Scope

Detailed description of services, deliverables, performance standards, and acceptance criteria to avoid ambiguity.

Commission

Precise formula or percentage, timing for calculation, invoicing requirements, and any clawback or holdback provisions.

Term & Termination

Start and end dates, renewal conditions, and termination rights for convenience, breach, or insolvency.

Intellectual Property

Assignment or license language stating who owns work product and any restrictions on use or resale.

Liability & Indemnity

Limitations on damages, indemnity scope, and insurance requirements tied to the level of risk.

Step-by-Step: Completing and Executing the Contract

Follow a consistent sequence to prepare, review, sign, and store the contract to minimize errors and maintain auditability.

  • 01
    Prepare: Draft with complete party names, scope, and commission terms.
  • 02
    Review: Have legal and finance confirm tax, IP, and indemnity provisions.
  • 03
    Sign: Collect signatures from authorized representatives; consider notarization if required.
  • 04
    Store: Retain executed copies in secure systems with audit trails for retention compliance.

Typical Routing and Submission Flow

A common routing sequence ensures each party reviews required fields and signs in the correct order before distribution.

  • Upload: Sender uploads contract and attaches exhibits or rate schedules.
  • Assign Fields: Place signature, date, and initial fields; add required attachments.
  • Authenticate: Choose signer authentication level: email, SMS code, or stronger methods.
  • Complete: Signers execute; platform captures timestamp, IP, and audit trail.

Digital Workflow Settings for Online Completion

Configure signing, authentication, and notifications to match legal and operational needs.

Field Configuration
Authentication Email, SMS code, or knowledge-based verification
Conditional Fields Show or hide based on signer responses
Notifications Email reminders and completion alerts
Integrations Connect to CRM, finance, or storage systems

Technical Considerations for eSigning and Distribution

Ensure the chosen setup captures timestamps, signer attribution, and an immutable audit record suitable for ESIGN/UETA compliance.

  • File Formats: PDF, DOCX, and HTML supported
  • Integrations: Salesforce, NetSuite, Microsoft 365, Google Workspace
  • Authentication: Email, SMS, KBA, or SSO

Common Preparation Errors to Avoid

  • Vague commission language that omits whether fees are calculated on gross or net revenue, creating later disputes about payments.
  • Mismatched or informal party names that conflict with payment instructions or tax reporting, delaying processing and invoicing.
  • Missing signature authority confirmation, where signers lack corporate authorization and paperwork is later challenged or rejected.
  • Omitting supporting exhibits such as rate tables or project milestones, which leads to disagreements over whether obligations were met.

Key Data Points Required in the Contract

Signer Identity: Full legal name
Contact Details: Street address, phone, email
Tax ID: TIN or EIN as applicable
Payment Info: Bank details or payment instructions
Effective Dates: Start and end dates
Signatures: Signed and dated entries

Potential Legal and Financial Risks

Late Payments: Interest or breach
Tax Exposure: Backup withholding risk
IP Disputes: Ownership litigation
Unenforceable Terms: Ambiguous commission formulas
Unauthorized Signer: Contract voidable
Data Breach: Regulatory penalties

eSignature Pricing and Feature Comparison

Common plan and feature criteria for eSignature vendors. signNow is listed first in the comparison per platform data.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions and Troubleshooting

Answers to common practical and legal questions about preparing, signing, and storing Commissioned Service Contracts.


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