A French company had entered into a “representation contract” with a company founded under Polish law, whose business was the manufacture of furniture. In accordance with the terms of the contract, it was agreed that the French company received a 6% commission on all orders received or (…) Despite the convenience and need for agency agreements, there may be some drawbacks. The main risk in the legal relationship between the client and the agent is that the adjudicating entity may be held liable for a fault committed by the agent. When an agent makes an error or engages in illegal activity while representing the client, the client can be considered technically as the act, since the agent essentially acted as the “main” obligatory. Ronna L. DeLoe is a free writer and writer who has written hundreds of legal articles. She makes family… The client`s right to compensation expires as soon as the sales agent has not informed the client that he is seeking such compensation within one year of the expiry of the agency contract. With the exception of the above case, the goodwill tax cannot be waived, since the provision is mandatory under section 7:442 of the Dutch Civil Code.
The amount of customer charges depends on a number of circumstances. First of all, it is important that customer costs are never higher than one year`s pay. The above remuneration is calculated by calculating the average of earnings over the previous five years. If the agency contract lasted less than five years, the average of the last few years is taken. The fact that the remuneration is never higher than that of one year does not mean that the remuneration always corresponds to that average remuneration. In its November 2012 ruling, the Supreme Court ruled that compensation should be calculated using a three-tiered missile. First, it is necessary to determine the benefits of dealing with clients that the agent has brought. The next question is whether there is a reason to adjust the amount determined on the basis of Stage 1 in terms of fairness, all the circumstances of the case and the commission missed by the agent.