Today, the Civil Code also provides for an agent’s right to compensation upon termination of the contract, but the new version of the provision changes the conditions for granting such compensation if the agent has lost the commissions he would have received had the contract been performed, while the principal continues to derive benefits from the agent’s activities.
Compensation is also due in cases where the agent has not recouped the investments made to perform the contract. The right to compensation for damages is retained even in the event of the commercial agent’s death.
According to the draft, within one year after the termination of the contract, the agent must notify the principal of their intention to exercise this right; otherwise, they will forfeit it. This right does not apply if the principal terminated the contract due to the agent’s failure to fulfill contractual obligations or if the agent terminated the contract themselves. Nor does it apply if the agent transfers their rights and obligations to a third party.
At the same time, the right to compensation remains in effect if the agent terminated the contract for reasons related to the principal, or due to age or health conditions.
In such cases, the amount of the payment remains unchanged—it may not exceed the agent’s average annual compensation for the past five years or for the duration of the relationship, whichever is shorter.
