What does a grandfather clause in a partner contract ensure?

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Study for the CGBP Test. Prepare with flashcards and multiple choice questions — each question has hints and explanations. Get ready for your exam!

A grandfather clause in a partner contract is designed to provide certain protections regarding the continuation of benefits or terms established under the original agreement, even after the contract has expired or been amended. In this context, choosing that it provides for commission on sales after contract expiration is correct because it indicates that any sales made post-expiration would still be eligible for commission based on the previous terms of the contract. This encourages the partner to continue engaging in sales efforts even after the formal agreement has ended, which can be beneficial for all parties involved.

The other options do not align with the purpose of a grandfather clause. The idea of no commissions paid after a contract expiration contradicts the essence of the grandfather clause, which is to extend certain terms beyond the contractual timeframe. Similarly, the option suggesting future negotiations on pricing does not reflect the nature of a grandfather clause, as it relates to previously established conditions rather than ongoing negotiations. Lastly, preventing termination of the contract is not an accurate representation of what a grandfather clause does; instead, it relates to maintaining certain benefits or rights even though the original contract may no longer be in force.

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