Under certain conditions, a commercial agent has a right to compensation after the termination of a commercial agency contract for clients that they have secured for the company.
In commercial law, the right to compensation for the commercial agent after the termination of the commercial agency contract is regulated in § 89b HGB. A key requirement for this claim is that the commercial agent secured new clients during their activity and that the company continues to benefit from these business relationships, explains the business law firm MTR Legal Rechtsanwälte, which focuses on commercial law advice.
After the termination of the commercial agency contract, the company might still profit from the newly established business contacts. The former commercial agent no longer has a right to commissions, but they may have a right to compensation. This also applies if the existing business relationships with a client were significantly expanded by the commercial agent. Such a compensation claim must be asserted within one year after the termination of the contract relationship.
However, the right to compensation generally does not exist if the commercial agent has terminated the contractual relationship themselves, unless they can no longer perform the work due to age or illness. A compensation claim also does not exist if the company terminated the contract, but the termination was due to important reasons resulting from the agent’s culpable conduct.
When there is a right to compensation, the amount of the claim is often a contentious issue between the parties. The legislator has only stipulated that the claim may not be higher than an average annual commission over the last five years of the contractual relationship. In shorter contractual relations, the average commission during the duration of the activity is decisive.
Additionally, the gross profit is calculated based on various factors, with the commission of the last year of activity serving as a basis. A forecast for the continuity and extent of the “new” business relationships over the next three to five years is then created, which is included in the calculation. This can lead to differing assessments by the parties.
MTR Legal Rechtsanwälte offers clients comprehensive and competent advice on issues of commercial law and agency law.
