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 for a termination without notice. This can only take place for an important reason, explains the business law firm MTR Legal.
Due to the immediate termination, the commercial agent loses commissions that he could have at least earned until the end of the notice period. He can defend himself against this and file a declaratory action with the aim of converting the immediate termination into a timely termination, so that the contractual relationship only ends at the expiration of the ordinary notice period. For commission losses incurred by the commercial agent due to immediate termination, he may also be entitled to claims for damages. If the court decides that there was no important reason for the termination of the contractual relationship, the commercial agent is entitled to commission claims and a claims for compensation.
The commercial agent’s compensation claim is a frequent point of dispute between the parties upon the termination of a commercial agency agreement. A claim for compensation can exist for business relationships established by the commercial agent with new customers or for the expansion of business relationships with existing customers. The company gains an advantage just by having the opportunity to continue using these business relationships. Whether this advantage is actually realized is not relevant for the commercial agent’s claim for compensation.
The right to compensation is not automatically nullified by immediate termination. This is only the case if the termination is based on culpable conduct by the commercial agent. The burden of proof lies with the company.
The amount of the compensation claim is not regulated by law, the legislator has merely set a maximum limit. In practice, commissions from transactions with new customers or the expansion of business relationships from the last 12 months of activity are often used as a basis and then projected over a period of three to five years.
Experienced lawyers in commercial agency law can provide advice.
