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against all accrued commissions, any debt due from
[petitioner] arising from all transactions under this
or any previous contract. Any debit balance that has
not paid itself off within 12 months after the
termination of this contract will be due and payable as
described in 15.b below and no additional bonus
commissions will be due and payable to [petitioner]
under this contract.
* * * * * * *
15.b. Any refunds or indebtedness owed by
[petitioner] arising under this contract, or arising in
any other matter, less accrued commissions due
[petitioner] shall be due and payable within thirty
(30) days after written demand by [American] * * *
Petitioner had complete dominion and control over the
advance commissions (other than an obligation to make repayment)
and did not include in income any amount received as an advance
commission. The advance commissions were recorded in an advance
commissions account. The advance commissions account was offset,
or reduced, by the amount of actual commissions later earned by
petitioner. The advances were charged a 1.3 percent-
administrative fee each month. In the event that there were a
debit balance at the end of 12 months after the termination of
the relationship between petitioner and American, such balance
would be due and payable on demand. Petitioner received a
termination letter from American on December 10, 1992. At that
time, there was a debit balance in the advance commissions
account of approximately $156,000. This balance had been
eliminated by the time of trial, and American never demanded
payment from petitioner. Petitioner alleged that demand was
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