Commercial Agency Agreement What Is

Get your free model for sublease contracts here. Manage the entire lifecycle of your contract with Contractbook. This fully revised edition takes into account the latest developments in agency laws, including Internet sales. For the first time, it also includes a USB stick that represents the text of the contract. The model not only offers flexible solutions for international agreements, but the USB stick makes it even easier to tailor the contract to your particular case. A provision of the credere regulates the risk of late payment by third parties. Art. 7:429 DCC provides that a commercial agent may assume responsibility for the obligations of third parties arising from a contract entered into by his intervention only if he does so in writing. Responsibility must not exceed the agreed commission, i.e. liability applies only to certain contracts or where the clause applies only to contracts that the agent enters into on behalf of the client.

In addition, Subsection 2 provides that a “crack” provision, unless the parties have otherwise agreed in writing, means that the commercial agent is only responsible for the solvency of third parties. Presentation of the agreement to sell goods. A common issue is the delay until the termination of a contract with commercial agencies under Dutch law. The minimum deadlines for the periodic termination of the commercial agency contract are set by law. In light of the above, other arrangements can be made. This should be taken into account when developing a commercial agency contract. In addition, Europe has a directive (Directive 86/653/EEC) which aims to harmonize the individual laws of Member States with regard to trade agency contracts. This directive is of great importance for all agency contracts within the European Union. The directive contains binding provisions for all activities taking place on European territory. The application of US law to an agreement between a European agent and an American client would destroy the European Commission`s protection structure. To avoid this, the Court of Justice decided to give effect to the directive.

A European agent can therefore invoke European law at any time if the Agency`s treaty has adopted a non-European law. An important feature of agency contracts is also the right to a customer tax (in practice called “goodwill fees”) that the sales agent may have at the end of the agency contract. In accordance with Section 7:442 of Book 7 of the Dutch Civil Code, a sales agent is entitled, at the end of the agency contract, to a customer fee if the agency contract is terminated: 1.1 The client appoints the representative as a sales agent to promote the sale of products (or services) in the territory defined below (and in the promotion channels). Commercial agency contracts under Dutch law require special attention. Issues of exclusivity and payment of fees and fees are regulated differently in the Netherlands than in other countries. How important is it to enter into a strong contract with commercial agencies and how can you best define the terms and conditions? How do you get to fair commission agreements? Are you aware of the legal safeguards that may apply? If a contract is terminated, are you entitled to an overvaluation or other form of compensation? When does the sales agent receive a commission? How should the commercial agency contract be properly executed? What are the reasons for the (immediate) termination? What is the notice period? And does the sales agent have the right to continue collecting commissions at the end of the trade agency contract in the Netherlands? If the parties have not agreed to notice, the Dutch Civil Code provides that this notice period varies from four to six months depending on the duration of the agency agreement.