In a decision of 18 July 2018, the Paris Court of Appeal recalls the pickets and the consequences of the breach of the commercial agency contract. Its solution is worth reporting because it provides an overview of the fundamental issues in this area. After the recall of the (…) In addition, Europe has a directive (Directive 86/653/EEC) which aims to harmonize the individual laws of Member States with regard to trade agency contracts. This directive is of great importance for all agency contracts within the European Union. The directive contains binding provisions for all activities taking place on European territory. The application of US law to an agreement between a European agent and an American client would destroy the European Commission`s protection structure. To avoid this, the Court of Justice decided to give effect to the directive. A European agent can therefore invoke European law at any time if the Agency`s treaty has adopted a non-European law. This list is not exhaustive. However, if the representative is responsible for one or more of the above risks or costs, the agreement between the representative and the client is not referred to as an agency agreement. The issue of risk should be assessed on a case-by-case basis and not on the basis of the economic reality of the situation and not on the legal form. For practical reasons, risk analysis can begin with the assessment of contract-specific risks. If the agent presents specific risks to the contract, it is sufficient to conclude that the agent is an independent distributor.
On the contrary, if the representative does not take specific risks to the contract, it will be necessary to continue the analysis by assessing the risks associated with market-specific investments. If the representative is not faced with contract-specific risks and risks related to market-specific facilities, it may be necessary to take into account the risks associated with other necessary activities in the same product market. © European Commission Subcontracting is a contract whose purpose is fully or partially in line with the performance of a main contract. This often occurs in service contracts and, in particular, in commercial agency contracts. In this case, the sub-agent is nothing more than a sales agent (…) 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. Equity can involve either an increase or a reduction in the amount determined in the first stage.