Commercial Agents in Germany

Which circulation stations are ideal for your business? What differences, advantages, and drawbacks do circulation contracts entail? What tasks do the commercial representative, the approved dealer, and the commission agreement play? This article gives guidance in commercial law to businesses performing business in Germany. No matter if you're establishing or increasing circulation stations, drafting circulation contracts, or are employed in a dispute with circulation partners, we can help you.

Commercial agent

A commercial agent can be defined as a self-employed trader entrusted with arranging organization for yet another entrepreneur or concluding organization in his title, based on the explanation of what regulations claim in Area 84(1) German Industrial Code. Industrial agent law is hence a legally controlled main, perhaps not thoroughly codified circulation law. Besides, it covers other legally unregulated circulation contracts, such as certified seller and business contracts.

The rights and duties of Agenti di Commercio in Germania aren't only regulated in the German Commercial Code. Europe also has adopted a unique regulation, an example being Directive 86/653/EEC, known as the Commercial Agent Directive. Consequently, the European Court of Justice also issues occasional decisions, which are of direct importance for commercial agent law. Depending on perhaps the commercial agent must undoubtedly be qualified as a "genuine" or "non-genuine" commercial agent, German and European antitrust law must also be considered.

While no deviation to the commercial agent's disadvantage is allowed from some legal requirements, such as, for instance, regarding commissions, compensatory claims, and terminations, others are left to the free agreement involving the parties. Suppose the commercial agent's territory lies outside the European Union or the European Economic Area. In that case, the parties aren't even bound to the compulsory provisions in drafting a commercial agent contract.

Essential aspects of a Commercial Agent contract

The primary points of the professional representative agreement refer to provisions

on contract property and the question regarding probably the professional representative functions as a location representative or as sole representative, etc.,

on the obligations of the professional representative, such as his duty to shield pursuits, his mediation obligations, and credit analysis obligations and regarding, also post-contractually, the non-competition clause, etc.,

on the responsibilities of the entrepreneur, like the obligation to hand over materials and to aid the commercial agent, concerning the obligations to communicate and to offer information,

on the remuneration of the commercial agent, particularly regarding the requirements, the quantity and the due date of the commission, concerning the reimbursement of expenditures and concerning the entitlement to compensation, etc.,

on the period of the agreement and the outcome of a regular or remarkable termination by one of many parties.

Let our professional law attorneys review your agreement draft; we can make sure it's reliable. You can even contact people along with your ideas, and we'd happily draft a circulation contract for you.

Commission

In line with the definition of what the law states in Section 383(1) German Commercial Code, a commission agent is whoever professionally undertakes to purchase or to market goods or securities concerning another in his name. Generally, he performs briefly for several clients. Whoever frequently transacts organization on a commission schedule for a specific client is a commission agent.

The commission organization, as a legally controlled specific situation of the commercial law, has its position mostly in the used car business (among other items, for reasons of tax savings), in the artwork and old-fashioned industry, and in advance admission income for theater and concert activities, maybe not least also in the securities organization of banks ("underwriting commission") and trading in financial devices ("financial commission organization").