Agency Agreements For

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.

Finally, it is verified that the amount calculated does not exceed the maximum amount (the average fee over one year). An agency contract with early termination for an indeterminate or fixed period may be terminated by the agent and the client, within the agreed notice period. Under the law, they may not be less than one month in the first year of the agency contract, two months in the second year and three months in the following years. If the parties agree to longer delays in the agency contract, they may not be shorter for the client than for the sales agent. An important feature of agency contracts is also the right to a customer tax (in practice called « goodwill fees ») that the sales agent may have at the end of the agency contract. According to section 7:442 of Book 7 of the Dutch Civil Code, a sales agent is entitled to a customer fee at the end of the agency contract if the agency contract is terminated: agency contracts can have many advantages for the client, especially if that captain happens to be a small contractor. Few people have all the specialized skills needed to run a business, so asking a professional to act on your behalf as an agent saves you time and helps you manage business more efficiently. The use of an advertising agency is an example, or outsourcing staff functions.

The agency agreement can be concluded either for an indeterminate period or for a fixed term (« fixed term »). The contract with commercial agencies is definitely at the heart of this quarter`s case law. Qualification conditions and issues (see ECJ June 4, 2020 V. in advance: N.F.) should not obscure the importance of the issues that normally arise in the course of their execution.

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