Attorney at Law Dr Lukas Fantur
Dr Lukas Fantur
Attorney at Law

Endresstrasse 119
1230 Vienna - Austria
Phone: +43-1-513 85 20
Fax: +43-1-513 85 20-20
  • Law Firm specialised in Company Law and Business Law. Personal Service. High Expertise. Substantial Experience.

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    Sales Agent Law Austria | General

    Conclusion of the Contract – Competition – Commission – Termination of the Contractual Relationship – Minimum period of Notice for Termination

    There are complex and detailed legal provisions for the distribution by sale agents (also referred to as commercial agents). The major part of the Austrian Commercial Agents Act of 1993 is binding. This means that these binding provisions cannot be evaded by contractual agreements or by applying the law of another state.

    Sales Agent Law Austria | Conclusion of the Contract

    An explicit formal agreement between the principal and the sales agent is not necessary. Business relations are already established if the principal engages the Austrian sales agent permanently for mediation or business transactions on a commission basis.

    In this case the legal relationship between the principal and the Austrian sales agent is automatically subject to the Austrian Sales Agents Act, no matter whether the sales agent is a physical person or a legal entity.

    Sales Agent Law Austria | Commission

    In case the parties have not made any agreement on the agent’s commission, there are respective provisions in the Austrian Sales Agents Act to be applied. In such a case of doubt those particular provisions are usually not to the benefit of the principal but to the benefit of the sales agent.

    The Act provides that in case of doubt the sales agent is entitled to charge a commission even if he has not been directly involved in the business relations of the exporter and his client. If the sales agent has been engaged as the sole representative for a certain area or a certain clientele, in case of doubt the Act entitles him to charge a commission even for business transactions between the principal and those clients he was not at all involved in.

    So it is indeed recommendable to stipulate unambiguous provisions in writing.

    Sales Agent Law Austria | Termination of the Contractual Relationship

    Of course, the contractual relationship can be terminated by agreement at any time. Moreover, it can be terminated by expiry, notice of termination, cancelation for stringent reasons and because of bankruptcy of the principal.

    Sales Agent Law Austria | Minimum period of Notice for Termination

    The minimum periods of notice, which are provided by law and cannot be altered to the disadvantage of the sales agent, must strictly be regarded.

    Earlier terminable contracts have to be regarded in the calculation of the period of notice. Unless there are any other explicit agreements, the notice can only take effect at the end of a calendar-month.

    If the principal gives notice of termination of the contract without observing the periods of notice provided by law, he has to take into account claims for damages by the commercial agent. In this case the agent may claim the amount of money he would have received if the period of notice provided by law had been observed. In other words: he is entitled to charge damages for the missed commissions.

    However, instead of claiming compesnation the sales agent shall also be entitled to claim performance of the contract.

    Moreover, the sales agent is basically entitled to claim compensation.

    Compensation | Prerequisites | Investment Replacement

    Topics : Sales Agent | Commercial Agent Law | 0 Kommentare »