Agency agreements often raise the issue of an agent’s limited access to information needed to verify the commission due. An agent may not know whether a contract was concluded with a customer they acquired, or its final value.
Access to such data is a frequent flashpoint in agency relationships.
For the principal, this raises a practical question: precisely how much information must be disclosed?
📌 What does the legislation require?
The principal must provide the agent with a statement of commission due, no later than the last day of the month following the quarter in which the agent earned it.
That is the starting point.
❓ Can the agent verify this settlement?
Yes, but only within defined limits.
The agent may:
1️⃣ request extracts from the accounting books; or
2️⃣ require that a statutory auditor be given access to the books to prepare extracts;
the auditor should be selected jointly by both parties.
⚠️ Where does the risk arise?
In practice, an information claim is rarely an end in itself. It is most often the first step towards recovering commission, and sometimes an attempt to gather material for other claims, such as an indemnity.
Agents’ requests may consequently go beyond what is genuinely necessary to verify commission.
🚫 Must the principal disclose everything the agent requests?
Not necessarily.
➡️ We will return to this in the next instalment.
