Indiana § 24-4-7-5 - Termination of contract; payment of commissions accrued; failure to comply; attorney's fees and costs
Full text of Indiana Indiana Code § 24-4-7-5 — Termination of contract; payment of commissions accrued; failure to comply; attorney's fees and costs, with citation guidance and answers to common questions.
§ 24-4-7-5. Termination of contract; payment of commissions accrued; failure to comply; attorney's fees and costs
Sec. 5. (a) If a contract between a sales representative and a principal is terminated, the principal shall, within fourteen (14) days after payment would have been due under the contract if the contract had not been terminated, pay to the sales representative all commissions accrued under the contract.
(b) A principal who in bad faith fails to comply with subsection (a) shall be liable, in a civil action brought by the sales representative, for exemplary damages in an amount no more than three (3) times the sum of the commissions owed to the sales representative.
(c) In a civil action under subsection (b), a principal against whom exemplary damages are awarded shall pay the sales representative's reasonable attorney's fees and court costs. However, if judgment is entered for the principal and the court determines that the action was brought on frivolous grounds, the court shall award reasonable attorney's fees and court costs to the principal.
As added by P.L.238-1985, SEC.1.
Source: official Indiana text · Last verified 2026-08-27
Frequently Asked Questions About Indiana § 24-4-7-5
What does Indiana Code § 24-4-7-5 cover?
Section 24-4-7-5 ("Termination of contract; payment of commissions accrued; failure to comply; attorney's fees and costs") is part of the Indiana Code, the codified statutory law of Indiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Indiana § 24-4-7-5?
A common citation format is "Indiana Code § 24-4-7-5" (Indiana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Indiana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Indiana official source linked on this page or consult a licensed Indiana attorney.
How does Indiana § 24-4-7-5 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Indiana can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Indiana.