\ud83d\udfe6 Check whether you are entering into agency agreements! \ud83d\udfe6<\/p>\n
Businesses entering into agency agreements fall into three categories. Some understand the arrangement and its risks from the outset. Some learn about them only from former agents\u2019 payment demands or lawsuits. Others remain entirely unaware because they have not encountered such claims\u2026 Yet.<\/p>\n
\ud83d\udd35 How can you check whether you belong to the third group? \u2753<\/p>\n
Examine how you actually work with sales representatives. If the representative:<\/p>\n
1\ufe0f\u20e3 provides intermediation services for contracts with customers \u2014 in short, helps you conclude contracts or concludes them on your behalf;<\/p>\n
2\ufe0f\u20e3 does so on a continuing basis;<\/p>\n
3\ufe0f\u20e3 does so as part of their business activity*;<\/p>\n
4\ufe0f\u20e3 receives remuneration;<\/p>\n
you have probably entered into an agency agreement.<\/p>\n
\ud83d\udd35 The following do not determine the position:<\/p>\n
1\ufe0f\u20e3 the agreement\u2019s name \u2014 the familiar argument \u201cwe do not use agency agreements, just ordinary service arrangements\u201d will therefore generally not work;<\/p>\n
2\ufe0f\u20e3 remuneration taking the form of a fixed fee rather than commission;<\/p>\n
3\ufe0f\u20e3 the representative contacting only customers whose details you provided;<\/p>\n
4\ufe0f\u20e3 the representative acquiring few customers;<\/p>\n
5\ufe0f\u20e3 the representative operating through a company;<\/p>\n
6\ufe0f\u20e3 the absence of a written contract.<\/p>\n
Agency provisions may still apply in all these situations. The position differs only where the sales representative performs their duties under an employment contract.<\/p>\n
* Some agency provisions also apply where the representative does not operate a business.<\/p>\n","protected":false},"excerpt":{"rendered":"
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