Commercial Agent: Commission and Compensation Claims
Key Points to Regulate in a Commercial Agent Agreement Two essential points that should be regulated in a commercial agent agreement are the commission entitlement of the commercial agent and their compensation claim upon termination of the contract. These two points often lead to legal disputes between the commercial agent and the company. The commercial […]
Franchisor Has Comprehensive Duty of Disclosure
Even in a master franchise agreement, the franchisor has a comprehensive pre-contractual duty of disclosure. This was confirmed by the OLG Frankfurt with a judgment dated 12/8/2021 (Az. 4 U 251/20). In commercial law, franchise law plays an increasingly important role. In this context, the franchisor has comprehensive pre-contractual duties of disclosure towards the franchisee. […]
Drafting of Franchise Agreements
Franchise law is part of distribution law. When drafting franchise agreements, it must be considered that various legal fields need to be taken into account. When it comes to distribution channels and sales opportunities, franchising plays an important role. Nevertheless, franchise law is not an independent legal field, but a complex part of distribution law. […]
Termination of the Commercial Agent Agreement
If a commercial agency agreement is terminated without notice, the commercial agent faces financial losses. Therefore, the commercial agent should respond and use his legal options. The ordinary termination of a commercial agency agreement is possible for both parties at any time without giving reasons, provided the notice periods are observed. However, this is different […]
Federal Court of Justice on the Compensation Claim of the Distributor
A commercial agent or distributor is not entitled to information regarding the gross profit of the company for the calculation of his compensation claim. The Federal Court of Justice (BGH) has ruled this (Ref.: VII ZR 69/19). The compensation claim is regularly a contentious issue between commercial agents or distributors and companies. According to § […]
Sale during Self-Administered Insolvency – Buyer is Not Liable for Existing Liabilities
When selling a commercial enterprise during self-administered insolvency, the buyer is not liable for liabilities incurred by the operation of the business, according to the Federal Court of Justice (case number: II ZR 457/18). According to § 25 paragraph 1 sentence 1 of the German Commercial Code (HGB), the buyer of a commercial enterprise is […]
