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Terms Used In South Carolina Code 39-65-20

  • Commissions: means compensation accruing to a sales representative for payment by a principal, the rate of which is expressed as a percentage of the amount of orders or sales or as a specified amount of each order or sale. See South Carolina Code 39-65-10
  • Contract: A legal written agreement that becomes binding when signed.
  • Principal: means a person who:

    (a) manufactures, produces, imports, or distributes a tangible product for wholesale;

    (b) contracts with a sales representative to solicit orders for the product; and

    (c) compensates the sales representative, in whole or in part, by commission. See South Carolina Code 39-65-10
  • Sales representative: means a person who:

    (a) contracts with a principal to solicit wholesale orders;

    (b) is compensated, in whole or in part, by commission;

    (c) does not place orders or purchase for his own account or for resale; and

    (d) does not sell or take orders for the sale of products to the ultimate consumer. See South Carolina Code 39-65-10
When a contract between a sales representative and a principal is terminated for any reason, the principal shall pay the sales representative all commissions that have or will accrue under the contract to the sales representative according to the terms of the contract.