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Sales/Commission Agreement
http://www.luthiersforum.com/forum/viewtopic.php?f=10101&t=21602		 Page 1 of 1
Author:  Mark Tripp [ Mon Mar 23, 2009 12:34 pm ]
Post subject:  Sales/Commission Agreement
Hi Folks,

Since I am starting to get orders with more regularity, I thought it might be wise to develop a Commission Contract. I was wondering if anyone had something they might be willing to share, that I could use as a starting point for developing my own. There are some good threads in the archives, but I couldn't find any kind of boilerplate contract - direct me there if I missed it.

TIA

-Mark
Author:  Michael Dale Payne [ Mon Mar 23, 2009 1:04 pm ]
Post subject:  Re: Sales/Commission Agreement
First you want to set the terms. The deposit amount, the remaining balance and shipping cost. You want to be specific on the terms and specifications on the build. You want to state that any and all change orders will create an addendum to the commission agreement and will require submittal and return of signed copy of any addendum to validate the change. You want to get a signature and specify that bank clearance of any checks prior to start or delivery. However understand legally the agreement hold little more weight than a verbal contract. But it is accepted as proof of contract in most states. Some states do require notary to be a valid contract.

Now be aware if you issue a commission agreement and you are not incorporated into an LLC, S corp. or limited partnership that you are putting your person and personal estate up as your liability.

Some States will come after you if you do not at least file as a DBA and file for federal, sate and county tax #
Author:  Michael Dale Payne [ Mon Mar 23, 2009 1:50 pm ]
Post subject:  Re: Sales/Commission Agreement
here is how mine is set- up

Commission Agreement 2009-???? date ??/??/??
For ? client name

One-?model SN:2009-???
Scale: ???
Top: ???
Back and sides: ???
Top Purfling: ???
Rosette: ???
Back Center Seam: ???
Binding: ???
Side and Back Purfling: ???
End Graft: ???
Neck: ???
Fretboard: ???
Bridge: ???
Finish: ???
Nut & Saddle and Pins: ???
Tuners: ???
Stings and set up: ???
Case: MPHCG standard Ameritage Gold Series
Total price of guitar $?????
Shipping and insurance $????
Total Sale price + shipping $????

Additional options:
??? Page1 of 2



Deposit Payment
$????? deposit is required to reserve a spot in the building schedule. Deposits and final payment may be cash, cashier checks, money orders or paid though PayPal. Cashier checks and money orders to be made out to ?my name. Cashier checks or money orders are to be mailed to ?myname at ?my address, ?my city and zip. PayPal payments are to be made to ?my paypal address

Warrantee Statement
I, ?my name, warrantee all materials and craftsmanship with the exception of mechanical tuners and electronics for a period of 10 years from date of delivery, provided proper care and maintenance is given to the instrument. Warranty covers only the repair of the original instrument at no charge to the original owner out side of shipping costs. And in no way implies replacement of the instrument. Mechanical tuners and electronics are covered by their specific manufactures warranties. Any rework or repair not preformed by and or authorized by Michael Payne will void all warranties. Shipping charges not included in warrantee.

Terms of Commission
I, (?myname) affirm that I shall provide the services of building a custom built handcrafted guitar as stated on this document, and warrantee said guitar at the price of $????? total cost plus shipping and shipping insurance to ?????. A deposit of $????? due on or before ?date to reserve the quoted sale price and start date of ?date with a balance of $????? due at delivery. This quotation is valid through ?date and will be void thereafter if deposit is not received on or prior to ?date

All revisions to this commission agreement will be agreed to via signed addendums. Any additional charges to for this commission agreement created by said addendums will be due at delivery.


I___________________________________________ affirm that by my signature, I hereby commission ?my name to build a handcrafted guitar as specified on this Document.

___________________________________________ Date___________


Deposit amount: $?????______________Cash Cashier’s Check Money Order Paypal___

Balance due $????

Page 2 of 2
Author:  James Orr [ Mon Mar 23, 2009 2:36 pm ]
Post subject:  Re: Sales/Commission Agreement
Michael, you're regularly inspirationally helpful. Thank you.
Author:  Bob Garrish [ Mon Mar 23, 2009 2:43 pm ]
Post subject:  Re: Sales/Commission Agreement
The ones I've seen have been very specific about the definition of 'proper care and maintenance' and/or defined 'proper care and maintenance' as being determined solely at the discretion of the builder. Of course, that's essentially saying 'I'll fix it if I want to, and I won't if I don't'...but it looks good on the contract.
Author:  Michael Dale Payne [ Mon Mar 23, 2009 2:55 pm ]
Post subject:  Re: Sales/Commission Agreement
Bob Garrish wrote:
The ones I've seen have been very specific about the definition of 'proper care and maintenance' and/or defined 'proper care and maintenance' as being determined solely at the discretion of the builder. Of course, that's essentially saying 'I'll fix it if I want to, and I won't if I don't'...but it looks good on the contract.


Bob, I print and provide a written certificate of warrantee with the instrument. It is specific on what is and is not covered and all disclaimers are included. There is also a complete care and maintenance guide included with each instrument that goes into detail on proper care and maintenance.

So you’re making a false assumption because you did not have the whole picture in front of you. I did not post my warranty certificate because I have done so a couple times in the past Every commission I accept gets an email copy of the warranty when he gets the commission agreement for review. Then gets the original certificate with the instrument with the serial# of the instrument and affective date included on the warranty certificate
Author:  Michael Dale Payne [ Mon Mar 23, 2009 4:25 pm ]
Post subject:  Re: Sales/Commission Agreement
Sorry Bob that sounded like I was getting on to you. I did not mean for it to read the way it did my bad.

I meant that I could see why you would say what you did because I did not also post my warrantee certificate. oops_sign :oops:
Author:  Bob Garrish [ Mon Mar 23, 2009 4:30 pm ]
Post subject:  Re: Sales/Commission Agreement
I noticed the post above...as I was writing a reply to the one above that. No foul. I wasn't commenting about you, I was just making sure that the original poster wouldn't leave that stuff out and not have AFC (a** fully covered) :)
Author:  Mark Tripp [ Mon Mar 23, 2009 5:24 pm ]
Post subject:  Re: Sales/Commission Agreement
Cool Guys!

Thanks for all the help!

I got a DBA a few months ago, and am considering doing an LLC. We'll see how business over the next few months.

Thanks again!

-Mark
Author:  Link Van Cleave [ Mon Mar 23, 2009 11:20 pm ]
Post subject:  Re: Sales/Commission Agreement
Quote:
However understand legally the agreement hold little more weight than a verbal contract.


Be aware that a verbal contract is one of words. Verbal means words or pertaining to words. So a verbal contract can be oral or written or both. I think you mean oral contract. Verbal contract is very commonly misused when folks mean oral contract. Could be a important distinction.
Link
Author:  Terence Kennedy [ Tue Mar 24, 2009 6:50 am ]
Post subject:  Re: Sales/Commission Agreement
Written contracts are OK I guess but the big one is not to let the instrument out of your shop until you have all the greenbacks in your sweaty palm.
Terry
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