In the previous instalment, we explained that agents are entitled to information necessary to verify the amount of commission due to them.<\/p>\n
\u2705 What information does this cover?<\/p>\n
The scope follows from the agency agreement, which determines how commission is calculated.<\/p>\n
Example 1\ufe0f\u20e3: 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.<\/p>\n
Example 2\ufe0f\u20e3: If commission is a percentage of contract value, the agent may request both the number of contracts and the value of each one.<\/p>\n
Example 3\ufe0f\u20e3: If commission depends on the type of contract, the agent needs the number of contracts broken down by type.<\/p>\n
In practice, agents\u2019 requests sometimes extend beyond this scope. They may seek information about:<\/p>\n
* benefits the principal derives from the agent\u2019s intermediation;<\/p>\n
* the number of customers acquired by the agent;<\/p>\n
* increases in business with customers handled by the agent.<\/p>\n
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.<\/p>\n
\u26a0\ufe0f An important time limit<\/p>\n
The agent may bring an action for information if the principal fails to supply it.<\/p>\n
However, this right is limited to six months from the request.<\/p>\n
\u26d4 This is an extinguishing time limit: expiry results in dismissal of the action regardless of the merits of the underlying request.<\/p>\n
\ud83d\udd0d Conclusion<\/p>\n
An information claim serves solely to verify a particular commission settlement. It is not a means of stockpiling data for a future dispute.<\/p>\n
Our next publication will examine the commission statement claim: how it differs from a standard information claim and how to defend against it.<\/p>\n","protected":false},"excerpt":{"rendered":"
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