Acceptance Commissions Clause Samples
The Acceptance Commissions clause defines the terms under which commissions are paid upon the acceptance of goods, services, or contractual milestones. Typically, this clause specifies the conditions that must be met for acceptance, such as delivery, inspection, or approval, and outlines the timing and method of commission payments to relevant parties, like agents or brokers. By clearly establishing when and how commissions are earned and disbursed, the clause helps prevent disputes and ensures all parties understand their entitlements.
Acceptance Commissions. Each Borrower agrees, jointly and severally, upon acceptance by the Bank of each Draft and as a condition precedent to such Acceptance, to pay to the Bank a fee (the "Commission") in an amount equal to 1.5% per annum of the face amount of each Acceptance calculated on the basis of 360 days per year for the actual number of days (including the first day but excluding the last day) during the period which is for the term of the Draft.