We have already noted that an agency agreement is generally a professional relationship on both sides. In the previous instalment, we explained that an agent may nevertheless be a person who is not a business, provided they satisfy the independence requirement.<\/p>\n
Here we focus on the principal. Can a principal who is not a business enter into an agency agreement?<\/p>\n
\ud83d\udc49 Yes and no. It will not be an agency agreement in the strict sense, but many agency provisions will apply.<\/p>\n
\ud83d\udd34 Many, but not all. The following provisions will not apply:<\/p>\n
1\ufe0f\u20e3 The agent\u2019s commission-based remuneration, including commission on contracts concluded after termination of the agency agreement (Articles 761\u2013761\u00b2 of the Civil Code).<\/p>\n
NOTE: this does not mean there is no remuneration at all. Payment will be based on the agreement or the provisions governing contracts for services.<\/p>\n
2\ufe0f\u20e3 Commission settlement rules: the principal need not provide information about contracts concluded, and the agent has no statutory disclosure claim (Article 761\u2075 of the Civil Code).<\/p>\n
3\ufe0f\u20e3 Indemnity: the agent cannot claim this payment after termination (Articles 764\u00b3\u2013764\u2075 of the Civil Code).<\/p>\n
4\ufe0f\u20e3 Contractual non-compete obligations: the Civil Code\u2019s specific agency restrictions do not apply. Any non-compete obligation rests on freedom of contract and should also be assessed under competition law in each case (Articles 764\u2076\u2013764\u2078 of the Civil Code).<\/p>\n","protected":false},"excerpt":{"rendered":"
We have already noted that an agency agreement is generally a professional relationship on both sides. 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