Beware of Principals Invoking Force Majeure to Avoid Paying COVID-19 Sales Commissions

Demand for the sale of some products skyrocketed to record levels as a result of the unforeseen COVID-19 virus.

Manufacturers’ representatives who were fortunate to have product lines in PPE, medical equipment and other high demand Covid related products experienced significant spikes in their sales this past year. While increased sales should result in increased commissions, this was not always the case for some Covid related sales commissions. While most principals will continue to pay the earned commissions to their representatives, some may be tempted to invoke a force majeure clause contained in some sales commission agreements as a legal … Read the rest