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Warning
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Simple English definitions for legal terms
commission
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A quick definition of commission:
A commission is a payment given to someone for doing a job. It's usually a percentage of the total amount of money involved in the job. Sometimes people only get paid through commission, and other times it's in addition to a regular salary. This helps motivate people to work hard and do a good job. However, sometimes people might try to trick others into doing things they don't need to do just to get more commission, which is not good.
A more thorough explanation:
A commission is a payment made to someone for the services they provide. It is often a percentage of the total amount of money involved in a transaction. For example, a real estate agent may receive a commission of 5% of the sale price of a house they helped sell. Commission can be the only form of payment or can be in addition to a fixed salary.
Commission is a way to motivate employees to work hard and do their best for their employer. However, it can also create conflicts of interest. For example, a car salesman may encourage a customer to buy a more expensive car than they need, just to earn a higher commission.
Overall, commission can be a useful tool for incentivizing employees, but it is important to be aware of the potential for conflicts of interest.