Opens in a new tab

Doktór Jerszyński Pietras
Adwokaci i Radcowie Prawni
Spółka Komandytowa

Agency Tuesday, Banking, General

When can an agent be refused an indemnity?

After an agency agreement ends, the agent may claim an indemnity from the principal if the statutory conditions are met.

When can an agent be refused an indemnity?
Translated from Polish.Read the Polish original

After an agency agreement ends, the agent may claim an indemnity from the principal if the statutory conditions are met.

⚠️ This does not mean that an indemnity is payable in every case. Even where the conditions establishing entitlement are satisfied, circumstances excluding that entitlement may exist.

🚫 An agent is not entitled to an indemnity if:

➡️ the principal terminated the agreement because of circumstances for which the agent was responsible and which justified termination without notice;

➡️ the agent terminated the agreement, unless termination was justified by:

📌 circumstances attributable to the principal, such as an unjustified reduction in commission or delayed payment;

📌 the agent’s age, illness or disability, where equitable considerations mean that the agent cannot reasonably be expected to continue performing the agreement;

➡️ with the principal’s consent, the agent transferred the rights and obligations under the agency agreement to another person.

📌 Why does this matter to a business?

In practice, proving circumstances excluding entitlement to an indemnity can be easier than challenging the conditions establishing that entitlement. How the relationship ends and properly documenting the reasons for termination are therefore particularly important.

📌 Conclusion?

An indemnity dispute often focuses less on whether the agent acquired customers or increased business than on how, and at whose initiative, the relationship ended. The circumstances of termination may determine whether any indemnity is payable at all.

#AgencyTuesday #DJP #Agency

Explore this knowledge centre

Agency Tuesday

Agency agreements from the start of cooperation to its conclusion. Short analyses on commission, the parties’ obligations, non-compete clauses and indemnity.

Explore the topic

Share

Publications and commentary

From the same perspective.

All publications

NEWSLETTER DJP

Law from our perspective.

Receive analysis and new publications from our experts. You can unsubscribe at any time.

Let’s talk about your matter.

Understanding your perspective is a good place to start.

Get in touch

Search the DJP website

A topic, name or question

Publications · experts · practice areas · topicsFull search

Enter at least 2 characters to see suggestions.