Commission: A Comprehensive Guide to Its Legal Definitions
Definition & Meaning
The term "commission" has several meanings, primarily relating to authority and compensation. It can refer to:
- A formal authority granted by a government or court allowing a person to perform official duties, such as a military commission.
- The power granted to an individual to conduct business on behalf of another, often seen in agency relationships.
- A group of individuals authorized to perform specific public services, such as a public service commission.
- The act of committing a crime.
- A fee paid to an agent or employee, typically calculated as a percentage of the transaction value, such as a real estate agent's commission.
Legal Use & context
In legal contexts, commissions are often relevant in areas such as:
- Contract Law: Commissions may arise from contractual agreements between employers and employees or agents.
- Agency Law: The authority granted to agents to act on behalf of principals is a key aspect of agency relationships.
- Criminal Law: The term can also refer to the act of committing a crime, which has legal implications.
Users can manage certain aspects related to commissions, such as drafting contracts or agreements, using legal templates available through services like US Legal Forms.
Real-world examples
Here are a couple of examples of abatement:
Here are a couple of examples of how commissions work:
- A real estate agent sells a property for $300,000 and earns a 6% commission. The agent receives $18,000 as their commission.
- (Hypothetical example) A sales associate at a retail store has a commission structure where they earn 10% on every sale after reaching a sales target of $5,000 in a month.