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Commercial Agent (Sales Agent) Austria | Compensation at the Termination of the Contractual Relationship | Investment replacement
Compensation | Prerequisites | Maximum Compensation | Investment Replacement
In general, the termination of the contractual relationship generates the right of a reasonable compensation for the commercial agent (also referred to as sales agent), unless he himself has given notice or terminated the contract prematurely without plausible reason or cedes his rights to a third party.
Termination because of retirement or illness of the commercial agent is explicitly mentioned by law as reasonable grounds. Therefore the commercial agent is entitled to claim compensation also in those cases.
Prerequisites for Compensation
The essential prerequisite for compensation is
- that the commercial agent acquired new clients for the principal and/or extended existing business relations.
- Further, substantial benefits are to be expected for the enterpreneur from the acquisition of new clients or the extension of existing business relations, also after the contractual relationship with the commercial agent has been terminated. If the commercial agent is able to produce evidence for the acquisition of new clients, a long-term benefit is assumed by Austrian jurisdiction unless the principal produces counter- evidence.
Another criterion for compensation is whether the rules of “equity” are met. The relevant calculation-parameters are
- the commercial agent’s volume of work and
- the amount of his commissions.
The Commercial Agent loses his entitlement to claim compensation if he has not informed the Principal of asserting his rights witihn one year after termination of the contract.
Maximum Compensation
The maximum is the average annual commission of the last five years. If the contractual relationship lasted less than five years, then the average annual commission of the whole period is the basis for calculation.
Investment Replacement
Upon termination of the contractual relationship with the principal, the commercial agent is entitled to compensation for the investments he was contractually obliged to make, as far as long they are neither amortizied nor exploitable adequately at the termination of the contract.
The commercial agent is not entitled to claim investment replacement if
- the commercial agent has cancelled or prematurely dissolved the contractual relationship, unless an important reason attributable to the principal exists
- the contractual relationship was cancelled or prematurely dissolved by the principal due to an important reason attributable to the commercial agent
- the commercial agent, due to an agreemnet with the principal, tranfers his contractual rights and duties to a third party
The commercial agent (Austria) loses his entitlement to claim if he has not informed the principal of asserting his rights witihn one year after termination of the contract.
The claim for replacement of investment can neither be repealed nor limited by agreement in advance to the disadvantage of the commercial agent.
The compensation claim will not be affected by the provisions regarding investment replacement.
Sales Agent (Commercial Agent) Law Austria | General
Topics : Sales Agent | Commercial Agent Law |