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Rubina Ronci
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8 April 2021
Agency Agreement Commission Clause

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. According to section 7:442 of Book 7 of the Dutch Civil Code, a sales agent is entitled to a customer tax at the end of the agency contract. where the agency contract is terminated: if the parties have not agreed to notice in the agency contract, the special termination provisions set out in Article 7:437 of the Dutch Civil Code apply, i.e. at least 4 months, plus one month after 3 years or more and two months after 6 years or more. The agreement is expected to include the 1993 Trade Agents Regulations (Council Directive) and can therefore be used throughout the EU. These rules are of great importance and are primarily intended to protect the interests of the agent and not the contracting entity. However, the client must be fully aware of the impact of the guidelines. It is important to note that the regulations also apply to the EU when they are removed from the agreement. A final, but certainly not insignificant, aspect of the agency contract is the question of what right applies to the relationship between the agent 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. 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. 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.

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