Manufacturers and suppliers of products often use agents acting on their behalf to promote sales, both in the manufacturer`s home country and abroad. As a general rule, a formal agreement is signed to determine the commission collected by the agent, the territory, the duration and other conditions under which the client and the agent jointly conduct business. In the event of a breach of an agency agreement, an action may be taken and compensation may be given to the uninjured party. In some cases, the agent may be held liable for losses incurred by the investor (for example. B if the kapitalist lost business profits because the agent did not respect the agreement). Or the opposite may occur if the client is responsible for not respecting his agreement with the agent (for example. B if he does not compensate him for the work). It is important to define, in agency contracts, in which situations and under what conditions the commission should be paid. The parties are free to agree on the amount of the commission. If the parties have not agreed on notice in the agency contract, the specific termination provisions covered by Article 7:437 of the Dutch Civil Code apply, i.e. at least 4 months, plus one month after 3 years or more and 2 months after 6 years or more. These legal provisions must be taken into account when setting up and terminating agency contracts.
Although the question of the ability of a real estate agent to call upon the services of a commercial agent is now settled (L. 70-9, January 2, 1970, s. 4, de L. No. 2006-972, 13 July 2006, s. 97), the determination of the commercial agent`s rights in relations with the In addition, an agency contract is terminated: despite a relatively classic judicial topicality in the field of the commercial agency, a decision of the Lyon Court of Appeal of 6 June 2019 deserves to be mentioned. The question is how to calculate the amount of compensation instead of a termination (Article L. 134-11 (…) The characterization of a contract as a commercial agency, the key to access to protection status under the 1991 Act, is the focus of our attention this month. In this case, a supplier and a distributor had entered into two contracts on the same day. The first, a commercial (…) For the purposes of article 101, paragraph 1, the agreement is referred to as an agency agreement where the representative does not support or assume any risk related to contracts concluded and/or negotiated on behalf of the contracting entity with respect to market-specific investments in this area of activity and other activities that the awarding entity is required to carry out in the same product market.