OVERRIDING COMMISSION Meaning and
Definition
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Overriding commission refers to a payment or fee that is earned or received by an individual or company for facilitating or brokering a specific transaction. This commission is typically an additional or supplemental payment, in addition to any regular or customary commission structure.
In business and financial contexts, an overriding commission is often earned by an intermediary or middleman who helps bring together buyers and sellers. This intermediary plays a crucial role in the completion of a transaction and ensuring the interests of both parties are met. The overriding commission serves as a way to compensate this middleman for their efforts and expertise.
The term "overriding" implies that this commission is above and beyond the regular or baseline commission earned in a given transaction. It may be negotiated separately or calculated based on a percentage of the overall transaction value.
The concept of overriding commission is frequently encountered in industries such as real estate, insurance, finance, and commodities trading, where intermediaries play a significant role in matching buyers and sellers, negotiating contracts, or sourcing opportunities. It provides a financial incentive for these intermediaries to actively participate and add value to the transaction process.
Common Misspellings for OVERRIDING COMMISSION
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Etymology of OVERRIDING COMMISSION
The term "overriding commission" does not have a clear etymology as it is a combination of the words "overriding" and "commission", both of which have separate origins.
- "Overriding" comes from the verb "override", which originated from Middle English "overriden". It combines the prefix "over-" meaning "over" or "beyond" with the verb "ride", ultimately deriving from Old English "rīdan", meaning "to ride".
- "Commission" comes from the Latin word "commissio", meaning "joining together" or "entrusting". It entered English through Middle French, where "comission" denoted a formal written document granting authorization or authority.
Therefore, when combined, "overriding commission" suggests an authority or authorization that surpasses or supersedes others.
