More Clarity on When the Procuring Cause Doctrine Can Garner Post‑Termination Commissions
By Scott SandersShocking but Not Uncommon Abuse of a Salesman
A genetic testing company and a sales/marketing specialist sign a contract naming the individual as VP of sales and marketing. The two-page contract provides for an annual base salary of $145,000 and for “at-will” employment. It also states: “Your commission will be 3.5 percent of your net sales.” The contract is slim and is absolutely silent on the issue of further commission rights upon termination.
The VP (as specifically requested by the company) negotiates a supply contract amendment with the number-one purchaser of the company’s products, to greatly extend … Read the rest