As a general rule, no.
However, the legislature provides two exceptions.
1️⃣ The agent terminated the agreement because of circumstances relating to the principal.
Examples include:
🔵 an unjustified reduction in commission;
🔵 delays in paying commission due;
🔵 the principal’s difficult economic situation;
🔵 the principal losing its main supplier;
🔵 unjustified allegations by the principal against the agent.
⚠️ Importantly, the reason need not justify terminating the agreement with immediate effect.
2️⃣ The agent terminated the agreement because of their age, infirmity or illness.
In this case, equitable considerations must additionally mean that the agent cannot reasonably be required to continue performing the agency activities.
⚠️ Simply invoking illness, age or infirmity is therefore insufficient. It must affect the agent’s ability to perform the agency agreement.
These circumstances should be assessed in light of the particular agreement and the obligations it imposes on the agent. An agent performing several agreements at the same time may find that their health justifies terminating only some of them.
Relevant factors may include:
🔵 the need for business travel;
🔵 the number and scope of required customer meetings;
🔵 whether employees can be used to perform the agreement.
📌 Summary
Termination by the agent generally results in the loss of the right to an indemnity. Exceptions do exist, however. In a dispute, the agent bears the burden of proving that an exception applies in the particular case.
