Compensation for breach of commercial agent contract: asserting your claims

As specialists in commercial agency law, our firm helps you negotiate the compensation for a breach of a commercial agent contract.

To this end, we advise you on your rights and obligations, the amount of the indemnity and negotiate this compensation for termination of the commercial agent contract with the opposing party. In the absence of an amicable settlement, we represent you before the competent court in the matter. FOUSSAT AVOCATS, a law firm specializing in commercial agency law, assists and advises its clients from start to finish in their commercial agent contracts.

The payment of compensation depends on the circumstances of the breach of contract

A commercial agent is an authorised representative of the principal and who, as an independent professional service provider, is responsible for negotiating and possibly concluding contracts for the sale, purchase, rental or provision of services, in the name and on behalf of the principal. The agent can be an individual or a corporate body. The commercial agent is generally paid on a commission basis. A verbal contract may be valid but a written contract can help better understand the rights and obligations of each of the parties. A written contract can be particularly useful when terminating the commercial agent contract.

In any event, the rules relating to compensation for breach of commercial agent contract fall under the provisions of the French Commercial Code of Law which are based on public policy and which have been clarified by case law. For example, payment of compensation for breaching a commercial agent contract is the basic principle, and the absence of any such compensation the exception to that rule. Course of dealing is also well established with regard to the amount of this compensation, which is calculated on the basis of the remuneration received by the commercial agent during the final years of the contract. Compensation for a breach of a commercial agent contract is justified by the fact that the contract is a mutual-interest mandate.

Have the issues involved in your termination-of-contract compensation settled by FOUSSAT AVOCATS, a law firm specialised in the field

For this reason, specific exceptions to the legislation governing commercial agents’ rights to any such entitlement payable on termination of the contract include the resignation of the commercial agent, the transfer of the contract by one commercial agent to another, or serious professional misconduct by the commercial agent, justifying the termination of his/her contract by the principal. On the other hand, the commercial agent retains his/her right to entitlement if the initiative to terminate the relationship with the principal is due to circumstances attributable to the latter.

FOUSSAT AVOCATS assists its clients if and when their contracts are terminated. Depending on the contract concluded between the parties, our law firm, backed by its expertise in commercial agency law, will assess the legal proceedings to be instigated and, with your agreement, will take the necessary steps to assert your rights in relation to the compensation for termination of your commercial agent contract. Whether this involves negotiating for you or representing you before the competent courts, our firm strives to obtain the best possible results for its clients wishing to benefit from its expertise in the matter.

As specialists in the law of commercial agents and commercial intermediaries, our law firm has long-standing experience in the field. In addition to assistance during the termination of your commercial agent contract, our firm is also at your side from the start of your relationship with your co-contracting party and throughout the life of your contract.

FOUSSAT AVOCATS, Paris Lyons Marseilles Brussels

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