Commercial agents without being bound by an employment contract, have the standing power to enter into negotiations and to conclude contracts for sale, purchase, rental or services, in the name and on behalf of agricultural, industrial or commercial clients.
Contracts between commercial agents and their principals are deemed to be in the common interest of both parties, and their relations are governed by obligations of loyalty and exchange of information.
A commercial agent may represent other principals, unless otherwise agreed in writing. However, he must not agree to represent any competitors of an existing principal without that principal’s prior approval.
Remuneration
The commercial agent receives a commission. If no specific provision is included in his contract, the amount of commission is determined according to the usual practices in the sector concerned or, in the absence of any such practices, by taking into account all aspects of the transactions concerned.
Duration
Contracts with commercial agents are usually for a fixed term and terminate upon expiry of that term without further formalities. If the parties continue to act in accordance with the contract after expiry of the fixed term, the contract is deemed to have been renewed and to have become a contract of indefinite duration.
Contracts of indefinite duration is terminated by notice, the length of which is determined according the duration of the agreement.
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