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Commercial Agent Law

Commercial agent law regulates the legal relationship between the company and the commercial agent. Commercial agent law has meanwhile been standardized within the EU. Starting point is the directive  86/653/EWG  dated 18.12.1986 to coordinate the legal regulations of member states regarding the self-employed commercial agent. This directive closely follows the German commercial lawbook which means that its implementation in Germany has caused very few changes.

The most important points for companies and commercial agents are:

  • commercial agency contract: making the contract
  • sales area: regional agent, exclusive agent, commission agent
  • commission: regional commission, middleman commission, tip commission
  • invoicing and invoicing period
  • commercial agent's rights eg extracts from the books, access to the books
  • giving notice on the commercial agency contract, extraordinary and immediate notice, notice for a good reason, notice due to age, notice for health reasons
  • Right of compensation, limit on right of compensation according to § 89b Abs. 2 HGB
  • Start-up payments, severance
  • Insurance agents: calculations according to basic principles
  • Non-competition clause, competition restraint
  • Post-contract competition restraint, compensation for period of restriction

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