Parliament has approved, at final reading, amendments harmonising the national legal framework with the provisions of the European directive governing independent commercial agents.
The document provides for amendments to the Civil Code. Thus, for agents marketing another person’s products on the market, the contract will stipulate a prohibition or restriction on carrying out activities following the termination of the contractual relationship.
Right to compensation and recovery of losses
At the same time, the draft sets out circumstances in which an agent is entitled to compensation and reimbursement of losses upon the termination of the contractual relationship. According to the document, this applies where the agent has brought new clients to the principal (the client) or has made a significant contribution to the growth of business with existing clients, and as a result the principal continues to derive benefit.
In such cases, the payment of compensation is fair, taking into account all the circumstances, including any commission lost by the agent. The payment of compensation does not limit the agent’s right to claim damages resulting from the termination of the contract.
For example, if the agent has lost commission that they would have received had the contract been performed. Or if the agent has been unable to recover the costs incurred in performing the contract. However, the agent will forfeit this right if they fail to notify the principal within one year of the date of termination of the contract.
The right to compensation or reimbursement of losses may also be exercised in the event of the contract’s termination due to the death of the commercial agent.
This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.
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