We have already discussed the duty to provide information enabling an agent to verify commission. Today we examine the principal\u2019s other information obligation: providing a statement of the commission due.<\/p>\n
\ud83d\udccc Although both obligations help establish the agent\u2019s commission, they differ in nature.<\/p>\n
\u27a1\ufe0f Providing a statement means supplying the data needed to calculate commission, such as the number of contracts or the value of commission-bearing transactions.<\/p>\n
\u27a1\ufe0f Providing information to verify commission also extends to underlying documentation, such as extracts from the commercial books.<\/p>\n
\ud83d\udccc Another important distinction concerns how the obligations arise.<\/p>\n
\u27a1\ufe0f The duty to provide a statement arises by operation of law on the last day of the month following the quarter in which the agent earned commission.<\/p>\n
\u27a1\ufe0f The obligation to provide underlying documents arises only when the agent makes a request.<\/p>\n
\ud83d\udccc The agent\u2019s enforcement rights also differ.<\/p>\n
\u27a1\ufe0f For an information claim, the legislation expressly provides that the duty can be enforced through court proceedings.<\/p>\n
\u27a1\ufe0f The position is different for a commission statement. Case law takes the view that this obligation is not independently enforceable, so the agent cannot bring a separate action to compel its performance.<\/p>\n
NOTE \u2757 Whether a commission statement claim is enforceable is disputed, however, and will probably be determined by the Court of Justice of the European Union in a case already pending.<\/p>\n
\u26a0\ufe0f How can a principal defend against an agent\u2019s claim for a commission statement?<\/p>\n
The key argument is that the obligation cannot be independently enforced. As with other information claims, the principal may also defend the claim by showing that no commission is due or that the requested data is too broad in scope.<\/p>\n","protected":false},"excerpt":{"rendered":"
We have already discussed the duty to provide information enabling an agent to verify commission. 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