In the previous instalment, we explained that agents are entitled to information necessary to verify the amount of commission due to them.
✅ What information does this cover?
The scope follows from the agency agreement, which determines how commission is calculated.
Example 1️⃣: If commission is a fixed amount for each contract concluded with a customer acquired by the agent, the number of such contracts is sufficient to calculate it.
Example 2️⃣: If commission is a percentage of contract value, the agent may request both the number of contracts and the value of each one.
Example 3️⃣: If commission depends on the type of contract, the agent needs the number of contracts broken down by type.
In practice, agents’ requests sometimes extend beyond this scope. They may seek information about:
* benefits the principal derives from the agent’s intermediation;
* the number of customers acquired by the agent;
* increases in business with customers handled by the agent.
Such requests usually seek data for other claims, particularly an indemnity claim, rather than to verify commission. The principal therefore need not disclose this information.
⚠️ An important time limit
The agent may bring an action for information if the principal fails to supply it.
However, this right is limited to six months from the request.
⛔ This is an extinguishing time limit: expiry results in dismissal of the action regardless of the merits of the underlying request.
🔍 Conclusion
An information claim serves solely to verify a particular commission settlement. It is not a means of stockpiling data for a future dispute.
Our next publication will examine the commission statement claim: how it differs from a standard information claim and how to defend against it.
