When entering into an agency agreement, principals are sometimes unaware that agents’ claims may arise directly from legislation. This can produce unpleasant surprises in a dispute. Agency disputes are rarely unusual, however: they generally concern a few recurring categories of claims.
The most common are:
1️⃣ Remuneration claims, usually commission, a fixed fee or a combination. Disputes most often concern commission calculations, including commission on repeat business: contracts with customers previously acquired by the agent.
2️⃣ Reimbursement of exceptional expenses: if an agent proves costs beyond what is usual, the principal may have to bear them in addition to remuneration.
3️⃣ Del credere commission: additional remuneration for the agent assuming the risk of a customer’s non-performance. Problems can arise when this commission is claimed only after the relationship ends.
4️⃣ Claims concerning a post-termination non-compete obligation, which may require payment of an appropriate sum.
5️⃣ Indemnity claims, among the most financially significant claims potentially available after cooperation ends. Note: they cannot be contractually excluded.
6️⃣ Information claims, seeking data needed to verify accounts and often preceding further financial claims.
💡 Worth knowing: an agent can request a statement containing commission data. Whether this claim is enforceable remains disputed and awaits a ruling from the Court of Justice of the European Union.
A well-drafted agency agreement addresses remuneration, scope of services, settlement mechanisms, information duties and the rules for ending the relationship. Even the best agreement does not eliminate every risk, however. Those risks should be considered from the planning stage.
