Your company has ended its relationship with an Israeli sales agent. Then a substantial commission demand arrives. It includes orders booked after the relationship ended, repeat purchases from existing customers, and opportunities your own team says it developed. Before headquarters treats the demand as either an ordinary invoice or an obvious rejection, the dispute needs a clear commercial record.
A commission dispute can outlast the agency relationship and spill into pending orders and customer communications. An unclear settlement may close one invoice while leaving further transactions in dispute. The response should connect the termination record with the commission mechanism and the transactions actually claimed.
A customer name on a commission schedule is a starting point for investigation, not the complete story of the disputed sale.
Identify what the demand actually includes
Keep the demand in its original form, together with its attachments. For each disputed item, record the customer, order reference, product, claimed commission and the period the agent attributes it to. Separate an amount expressly demanded from an estimate your finance team has calculated.
Also separate the categories of claim. A demand described as a final commission account may contain more than unpaid commissions. Put any additional request in its own section for counsel to assess. Do not classify the legal nature of a payment from the subject line of an email alone.
Build a transaction timeline, not a list of conclusions
For the transactions in dispute, assemble the available chronology: introduction, quotation, negotiation, purchase order, acceptance, delivery and payment. Keep the dates as the underlying records show them. Identify missing documents and conflicting versions instead of filling the gaps from memory.
Set the relationship timeline alongside that transaction record. Include the signed agreement and amendments, communications about ending the relationship, and any proposed final account. Counsel can then examine the dates together without your team assuming which event determines the outcome.
Show who did what on the disputed accounts
Collect the relevant customer correspondence, meeting records and internal account notes. Distinguish the agent’s work from the work of headquarters, a local subsidiary or another representative. Where the records do not support a clear division, flag that uncertainty.
A repeat order from a familiar customer and a new product sold to that customer should not be merged in the preparation file simply because the customer name is the same. Record the commercial history of each disputed transaction so that your legal team can assess the actual claim rather than a broad label such as “our account” or “their lead”.
Reconcile the earlier payments and communications
Provide the commission statements, relevant payment records and correspondence about earlier calculations. Mark what was paid, what was disputed and what was left unresolved. Keep an internal working schedule separate from statements already sent to the agent.
Do not assume that an accounting label answers a legal question. The purpose of the reconciliation is to give counsel a reliable factual base, including any material that does not fit headquarters’ preferred reading. If the agent and your team use different calculation periods or order references, make that mismatch visible.
Define the business objective before negotiations begin
Prepare a short brief on what your company wants to achieve and what is still commercially sensitive. That might include resolving the historic account, clarifying the scope of a proposed settlement, or keeping customer communications consistent while the dispute is handled. Distinguish an objective from a concession your team has already offered.
Bring together the proposals exchanged so far and identify the people authorised internally to consider a settlement. Counsel should know about operational constraints and continuing customer relationships, not only the amount claimed. That combination allows the legal strategy to address both the disputed account and the continuing commercial relationship.
A substantial commission dispute needs more than invoice checking
Our firm can assess the agreement and claimed transactions, formulate the response and negotiate the scope of any settlement. That work addresses both the historic account and the commercial relationships that continue after termination.
A commission claim after termination can affect both the cost of exit and continuing business. Contact our firm to assess the agreement and competing claims, formulate a response and negotiate the dispute. WhatsApp | email
This article is for general information only and does not constitute legal advice. Laws and their application depend on the facts and jurisdiction and may change. Although we aim to keep this information accurate and current, we do not guarantee that it is complete or up to date. The article may contain omissions or errors. Reading this article does not create an attorney-client relationship with RNC Group. Before making a decision or taking action, seek advice from a qualified lawyer in the relevant jurisdiction.