An agency agreement with non-exclusive rights means that the prime contractor is able to hire other representatives in the representative`s territory and request the direct sale of his goods or services. Unlike a sales agent, a sales agent does not have the right to bind the supplier, but can market and promote the supplier`s product to potential customers. If a customer wishes to make a purchase, the supplier concludes the contract. When a contract to purchase goods or services is concluded, the contract is concluded between the operator and the end user, the customer. Despite the agent`s involvement, the contract between the seller and the buyer exists and the agent does not own the goods, since he passes from the client to the final customer. Given its seniority and the plethora of litigation it generates, the status of commercial agents is the subject of today`s classic solutions that judges must remember regularly. Nevertheless, it is the seat of difficulties, whether recurrent or new, which are not always (…) A supplier must decide, during the distribution review, whether to appoint a representative or distributor. There are many factors to consider in this decision. Within the European Union, there is legislation to provide some protection to agents, in particular the right to compensation in certain circumstances when an agency is dismissed. The same is true in other parts of the world, and in some countries it is necessary for a foreign manufacturer to designate as an agent a person or company that is a national of the country in which the Agency will operate.
If there is no written agency agreement or if there is a written agreement, but it does not contain a termination clause, the contract may be terminated by both parties with a “reasonable termination.” If the agreement is not subject to the regulations of commercial agents and the notice has not been agreed in advance, there is talk of an “appropriate termination”. This requires independent legal advice from a business lawyer. For agreements subject to regulations, regulations establish appropriate communication. In the impugned judgment, the Court of Cassation very usefully complements the legal system to deal with the question of under what conditions the client can invoke the serious fault of the sales agent. First, the Court of Justice (ECJ, 28 Oct.