What is a commission sale agreement and when to use it

A commission sale agreement allows the owner (the principal) to authorize another person (the agent) to sell an item in their name and for their benefit, usually for a commission.
The agent sells in their own name, but on behalf of the owner.

Typical examples:

• selling goods via second-hand shops or galleries,

• intermediary sale of cars, antiques, clothing,

• consignment sales of artwork or instruments.

Legal framework

This contract is not explicitly regulated by Czech law, but is based on:

• Sections 2430+ of the Civil Code (Mandate Agreement),

• commercial practice in consignment sales, especially among entrepreneurs,

• analogies from former commercial code provisions.

Mandatory elements of a commission sale agreement

• Identification of both parties (principal and agent)

• Item description

• Sale price or method of determination

• Commission amount and payment terms

• Handling of proceeds from the sale

• Rules if the item is not sold

• Duration of the agreement

• Date and signatures

Most common mistakes in practice

• No written agreement

• No liability defined for item damage or loss

• Vague terms of commission or sale price

• No procedure for unsold goods

• Lack of tax and accounting provisions for entrepreneurs

Recommendations for principals and agents

Principal:

• Always ask for written confirmation of item receipt and agreed price.

• Define clearly the time frame and minimum conditions for sale.

Agent:

• Specify your right to reject certain goods.

• Define the commission structure and when it is due.

Tip from practice

Verbal agreements are common in consignment sales, but they lead to disputes when sales fail or items are lost.
A short written contract can prevent misunderstandings and protect both parties.

Basic commission sale agreement template – available for a symbolic fee

If you need a simple template for a commission sale (e.g. car, clothing, equipment), I can send it by e-mail for a symbolic fee.

This template is suitable for standard cases and serves as a working draft.
For more complex agreements (insurance, taxation, professional use), I’ll prepare a customized version.

If interested, please contact me via e-mail, contact form, or message. We will arrange everything quickly and easily.

FINAL THOUGHTS – WHAT NOW?

A commission sale agreement isn’t just a formality – it’s a legal shield, if drafted properly. And a trap, if not.

Do you want to be sure your contract will hold up even in a crisis? Get in touch and let’s schedule a meeting.