Illinois Compiled Statutes 820 ILCS 120/1 – As used in this Act: (1) “Commission” …
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As used in this Act:
(1) “Commission” means compensation accruing to a sales representative for payment by a principal, the rate of which is expressed as a percentage of the dollar amount of orders or sales or as a percentage of the dollar amount of profits.
(2) When a commission becomes due shall be determined in the following manner:
(A) The terms of the contract between the principal
(1) “Commission” means compensation accruing to a sales representative for payment by a principal, the rate of which is expressed as a percentage of the dollar amount of orders or sales or as a percentage of the dollar amount of profits.
Terms Used In Illinois Compiled Statutes 820 ILCS 120/1
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- State: when applied to different parts of the United States, may be construed to include the District of Columbia and the several territories, and the words "United States" may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14
(2) When a commission becomes due shall be determined in the following manner:
(A) The terms of the contract between the principal
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and salesperson shall control;
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(B) If there is no contract, or if the terms of the
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contract do not provide when the commission becomes due, or the terms are ambiguous or unclear, the past practice used by the parties shall control;
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(C) If neither (A) nor (B) can be used to clearly
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ascertain when the commission becomes due, the custom and usage prevalent in this State for the parties’ particular industry shall control.
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(3) “Principal” means a sole proprietorship, partnership, corporation or other business entity whether or not it has a permanent or fixed place of business in this State and which:
(A) Manufactures, produces, imports, or distributes a
(A) Manufactures, produces, imports, or distributes a
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product for sale;
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(B) Contracts with a sales representative to solicit
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orders for the product; and
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(C) Compensates the sales representative, in whole or
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in part, by commission.
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(4) “Sales representative” means a person who contracts with a principal to solicit orders and who is compensated, in whole or in part, by commission, but shall not include one who places orders or purchases for his own account for resale or one who qualifies as an employee of the principal pursuant to the Illinois Wage Payment and Collection Act.