A commercial agent is a person who has a full-time mandate (without being an employee) to negotiate and conclude contracts for the purchase, sale, rental, or supply of services for the name and on the account of a supplier.

The commercial agent is paid on a commission basis. Unless provided otherwise by the law, an agent is remunerated according to the following rules:

Commercial agents usually work on a commission basis, which means that principals will pay their agents commission on the revenue that the principal receives as a result of its agent’s activity. Subject to the terms of the agency agreement, a commercial agent is entitled to commission on a transaction which has been concluded during the period covered by the contract if the transaction:

• Has occurred as a result of the agent’s action;
• Is a repeat order from a customer previously acquired by the agent, although he or she did not order it;
• Relates to the geographical area or group of customers entrusted to the agent.

Unless contracted out, a commercial agent is entitled to commissions on a transaction which has been concluded after the contract has been terminated if:

• The transaction is mainly attributable to the agent’s effort during the period covered by the contract and it was concluded within a reasonable time after the contract terminated;
• An order from a third party, which was the result of the action of the agent or a repeat order from a customer previously acquired by the agent, reached the principal or the agent before the contract terminated.

Other important rules governing commercial agency agreements can be summarized as follows:

• There is a minimum notice period of usually 3 months, depending on the seniority of the agent, when either party terminates a commercial agency agreement, unless the termination is based on gross misconduct or an “act of God”.
• When the contract is terminated at the principal’s initiative the agent has an absolute right to a clientele compensation, notwithstanding any contrary provisions.
• A non-competition clause may be part of a commercial agency contract. To be valid, the clause must be in writing and only cover the geographic territory, clientele and products mentioned in the contract. It also must be limited to a maximum period of two years following termination.