ILCS » Chapter 820 · Act 120
Illinois Compiled Statutes

820 ILCS 120/1 (2026)

As used in this Act:     (1) "Commission" means compensation accruing to a sales representative for payment by a principal, the rate of which is expressed as a percentage of the dollar amount of orders or sales or as a percentage of the dollar amount of profits

✓ current as of May 2026
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(820 ILCS 120/1) (from Ch. 48, par. 2251)
    Sec. 1. As used in this Act:
    (1) "Commission" means compensation accruing to a sales representative for payment by a principal, the rate of which is expressed as a percentage of the dollar amount of orders or sales or as a percentage of the dollar amount of profits.
    (2) When a commission becomes due shall be determined in the following manner:
        (A) The terms of the contract between the principal
    
and salesperson shall control;
        (B) If there is no contract, or if the terms of the
    
contract do not provide when the commission becomes due, or the terms are ambiguous or unclear, the past practice used by the parties shall control;
        (C) If neither (A) nor (B) can be used to clearly
    
ascertain when the commission becomes due, the custom and usage prevalent in this State for the parties' particular industry shall control.
    (3) "Principal" means a sole proprietorship, partnership, corporation or other business entity whether or not it has a permanent or fixed place of business in this State and which:
        (A) Manufactures, produces, imports, or distributes a
    
product for sale;
        (B) Contracts with a sales representative to solicit
    
orders for the product; and
        (C) Compensates the sales representative, in whole or
    
in part, by commission.
    (4) "Sales representative" means a person who contracts with a principal to solicit orders and who is compensated, in whole or in part, by commission, but shall not include one who places orders or purchases for his own account for resale or one who qualifies as an employee of the principal pursuant to the Illinois Wage Payment and Collection Act.
(Source: P.A. 86-586; 87-948.)

    
Notes of Decisions
Cited in 34 cases (9 in the last 5 years), 1994–2025 · leading case: English Co. v. Nw. Envirocon, Inc..
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English Co. v. Nw. Envirocon, Inc. (Ill. App. Ct. 1996). · cites it 12× “In its appeal, TEC asks this court to reverse the trial court's order of summary judgment finding that the term "products" as used in the Sales Representative Act (Sales Act) (820 ILCS 120/1 (West 1992)) refers only to tangible goods.”
Installco, Inc. v. Whiting Corp. (Ill. App. Ct. 2002). · cites it 3× “Count I sought contract damages for nonpayment of commissions on four construction projects, an accounting, and exemplary damages, costs and attorney fees pursuant to the Sales Representative Act (the Act) (820 ILCS 120/1 et seq. (West 2000)). Count II sought quantum meruit…”
Thomas v. Weatherguard Constr. Co., Inc. (Ill. App. Ct. 2015). “¶4 Count I of the complaint alleges that defendant violated the Sales Representative Act (820 ILCS 120/1 et seq. (West 2008)), which requires a principal to pay a sales representative earned commissions within 13 days after the sales representative’s termination of employment.”
Maher & Assocs., Inc. v. Quality Cabinets (Ill. App. Ct. 1994). “” 820 ILCS 120/1(2) (West 1992). Paragraph five of the agreement provides: "Commissions shall be deemed earned by Agent upon payment of invoices by customers.”
Darovec Mktg. Grp., Inc. v. Bio-Genics, Inc. (N.D. Ill. 1999). · cites it 2× “820 ILCS 120/1(4). E’ola contends that DMG “purchases for its own account for resale,” id.”
Indus. Representatives, Inc. v. Cp Clare Corp. (7th Cir. 1996). “” 820 ILCS 120/1(2)(A). Hentze held that the terms of a sales agency contract control even in the face of a charge of opportunism, and we are confident that Hentze represents the position the Supreme Court of Illinois would take on that question.”
Liu v. T & H Mach., Inc. (7th Cir. 1999). · cites it 2× “When the parties found themselves unable to agree, Liu filed this diversity lawsuit to be decided under Illinois law, alleging that T & H breached the contract between them, seeking $102,-902 in damages, ten percent interest as per the contract, and reasonable attorneys’ fees…”
Kay v. Prolix Packaging, Inc. (Ill. App. Ct. 2013). “Kay filed a motion to add a count for attorney fees under the Sales Representative Act (820 ILCS 120/1 (West 2010)), before the onset of trial, which the court denied.”
Thomas v. Weatherguard Constr. Co., Inc. (Ill. App. Ct. 2019). “¶8 Count I of the four-count complaint alleged that defendant violated the Sales Representative Act (820 ILCS 120/1 et seq. (West 2006)), which requires a principal to pay a sales representative earned commissions within 13 days after the representative’s termination of…”
Hoffman v. Van Pak Corp. (Mo. Ct. App. 2000). “2251 (1985), amended by 820 ILCS 120/1 (1993). There was sufficient evidence to support the trial court’s finding that defendant did not manufacture, produce, import, or distribute a product for wholesale.”
Thomas v. Weatherguard Constr. Co., Inc. (Ill. App. Ct. 2018). “¶ 8 Count I of the four-count complaint alleged that defendant violated the Sales Representative Act ( 820 ILCS 120/1 et seq. (West 2006), which requires a principal to pay a sales representative earned commissions within 13 days after the representative's termination of…”
Schwab v. Nat'l Dealers Warranty, Inc. (Mo. Ct. App. 2009). “” 820 ILCS 120/1(1) (emphasis added). Of the states that have enacted commission statutes, some have chosen to include payment that is based on a percentage of profits in their definitions while others have not.”
Show all 34 citing cases →
— 820 ILCS 120/1(1) — 3 cases
Schwab v. Nat'l Dealers Warranty, Inc. (Mo. Ct. App. 2009). “” 820 ILCS 120/1(1) (emphasis added). Of the states that have enacted commission statutes, some have chosen to include payment that is based on a percentage of profits in their definitions while others have not.”
Liu v. T & H Mach., Inc. (7th Cir. 1999). “When the parties found themselves unable to agree, Liu filed this diversity lawsuit to be decided under Illinois law, alleging that T & H breached the contract between them, seeking $102,-902 in damages, ten percent interest as per the contract, and reasonable attorneys’ fees…”
Eugene Liu v. T&h Mach. Inc. (7th Cir. 1999).
— 820 ILCS 120/1(2) — 1 case
Maher & Assocs., Inc. v. Quality Cabinets (Ill. App. Ct. 1994). “” 820 ILCS 120/1(2) (West 1992). Paragraph five of the agreement provides: "Commissions shall be deemed earned by Agent upon payment of invoices by customers.”
— 820 ILCS 120/1(2)(A) — 2 cases
Indus. Representatives, Inc. v. Cp Clare Corp. (7th Cir. 1996). “” 820 ILCS 120/1(2)(A). Hentze held that the terms of a sales agency contract control even in the face of a charge of opportunism, and we are confident that Hentze represents the position the Supreme Court of Illinois would take on that question.”
Cent. Tower Exch. Corp. v. German Motor Parts GmbH (C.D. Ill. 2021).
— 820 ILCS 120/1(2)(B) — 1 case
Thompson Corrugated Sys., Inc. v. Engico S.r.l. (S.D. Ill. 2022).
— 820 ILCS 120/1(3) — 5 cases
English Co. v. Nw. Envirocon, Inc. (Ill. App. Ct. 1996). “In its appeal, TEC asks this court to reverse the trial court's order of summary judgment finding that the term "products" as used in the Sales Representative Act (Sales Act) (820 ILCS 120/1 (West 1992)) refers only to tangible goods.”
Kenebrew v. Connecticut Gen. Life Ins. (N.D. Ill. 1995).
Johnson v. Safeguard Constr. Co., Inc. (Ill. App. Ct. 2014).
Alvarez v. Regions Com. Roofing, Inc. (C.D. Ill. 2024).
Great Scott Nat'l Sales, Inc. v. Scott (N.D. Ill. 2025).
— 820 ILCS 120/1(3)(A) — 2 cases
English Co. v. Nw. Envirocon, Inc. (Ill. App. Ct. 1996). “In its appeal, TEC asks this court to reverse the trial court's order of summary judgment finding that the term "products" as used in the Sales Representative Act (Sales Act) (820 ILCS 120/1 (West 1992)) refers only to tangible goods.”
Santillan v. Calderon Constr. of RI, Inc. (Ill. App. Ct. 2024).
— 820 ILCS 120/1(4) — 11 cases
Installco, Inc. v. Whiting Corp. (Ill. App. Ct. 2002). “Count I sought contract damages for nonpayment of commissions on four construction projects, an accounting, and exemplary damages, costs and attorney fees pursuant to the Sales Representative Act (the Act) (820 ILCS 120/1 et seq. (West 2000)). Count II sought quantum meruit…”
English Co. v. Nw. Envirocon, Inc. (Ill. App. Ct. 1996). “In its appeal, TEC asks this court to reverse the trial court's order of summary judgment finding that the term "products" as used in the Sales Representative Act (Sales Act) (820 ILCS 120/1 (West 1992)) refers only to tangible goods.”
Darovec Mktg. Grp., Inc. v. Bio-Genics, Inc. (N.D. Ill. 1999). “820 ILCS 120/1(4). E’ola contends that DMG “purchases for its own account for resale,” id.”
Clinton Imperial China, Inc. v. Lippert Mktg., Ltd. (Ill. App. Ct. 2007).
Paape v. Wall Data, Inc. (N.D. Ill. 1996).
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