Agency Agreement Remuneration
The amount to be paid for compensation is generally less than the amount to be paid; However, in some cases, compensation may be greater, especially for new agencies. In order to avoid this risk, some contractors have attempted to include clauses in their agency agreements to provide that the agent is only entitled to compensation if it is less than the amount of compensation to be paid and that the compensation is greater than the amount to be paid, the agent is only entitled to a lower compensation. Such clauses have been struck down because they are inconsistent with regulations. The regulations do not expect the client to be able to choose the most advantageous option at the time of termination. They provide that the client and the agent choose between compensation or compensation at the time of the contract. In addition, an agency contract is terminated: a definitive but certainly not insignificant aspect of the agency contract is the question of what right applies to the relationship between the representative and the client. The main rule is that the agency contract is governed by applicable law in the country where the agent is established or established. In the agency contract, the parties can agree that the contract is governed by another legal system. Shearman was the agent of the famous wellington Boot Company and his agency contract was terminated. By calculating his entitlation on the basis of compensation, Mr. Shearman would have received approximately $1.45 million.
On the basis of compensation, he would have received only $204,000. He therefore argued that the termination clause in his agency contract was unenforceable and that he should be compensated. Many states apply the rule of the same dignity, according to which the agency agreement must be written if the subsequent agreement was necessarily written, as. For example, a contract to purchase goods worth thousands of dollars. The clause would therefore be removed from the agreement, so that if it were established in court that Mr. Hunter was entitled to a payment from Hunter, it would be calculated on the basis of the late payment. Within the European Union, there is legislation to provide some protection to agents, in particular the right to compensation in certain circumstances when an agency is dismissed. The same is true in other parts of the world, and in some countries it is necessary for a foreign manufacturer to designate as an agent a person or company that is a national of the country in which the Agency will operate. An agency agreement has no form. However, a written agreement is preferable from the point of view of the evidence, but even if there is no written agreement, a judge may judge on the facts that there is an agency contract.
Article 7:428, paragraph 3, of the Dutch Civil Code stipulates that each party is required to grant the other party, at its request, a written agency contract. Although the parties give a different title to the agreement (for example. B cooperation agreement), but whether they have the aforementioned characteristics of an agency agreement, this should be considered an agency agreement. In this case, the (compulsory) legislation of the Dutch law on commercial agencies applies. Disputes may arise over the conclusion or termination of a commercial agency contract. The law that leads to most disputes is Regulation 17. Regulation 17 grants the commercial agent the right to compensation or compensation when the client terminates his contract for a reason other than a delay by the agent that warrants immediate termination. The agent may also be entitled to such a payment if he terminates the contract on the grounds that the principal with an immediate termination is late or if the contract expires at the end of a fixed term.