Commission Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Commission, written in plain English, along with examples of how it is used.

What is Commission?

1)Commission paid to sales employee is the calculated on the basis of goods and services sold by him apart from his regular salary to increase productivity of the employees. 2)Commission also means a special group of people appointed by the governemnt who are delegated the responsibilty of fullfilling certain tasks like Planning commission,Election commission.

History and Meaning of Commission

Commission has multiple meanings and applications, but the common thread is that it refers to a payment given to someone for a specific task or accomplishment. In business, a salesperson may be offered a commission as an incentive to sell more goods or services. In governmental contexts, a commission may be appointed to handle a specific issue or investigation.

The origin of the word "commission" comes from the Latin commissio, meaning "entrustment" or "authorization". This reflects the notion that a commission is often authorized or delegated by a higher authority to accomplish a specific task.

Examples of Commission

  1. A real estate agent earns a commission on a percentage of the sale price of the home they sell.
  2. A financial advisor may receive a commission for recommending certain investments to their clients.
  3. The Warren Commission was established to investigate the assassination of President John F. Kennedy.
  4. The United Nations Commission on Human Rights works to promote and protect human rights around the world.
  5. A sales representative earns a commission for each product they sell.

Legal Terms Similar to Commission

  • Bonus: a monetary reward given to an employee beyond their regular salary, often for exceptional performance
  • Royalty: a percentage of revenue paid to a copyright owner for the right to use their intellectual property
  • Retainer: a fee paid in advance to secure the services of a professional, such as a lawyer or consultant.