Is the agent entitled to compensation upon termination?

Yes. The law guarantees compensation upon termination (if the agent built up a client base for the principal), up to the average annual commission income.

Can an agency agreement be exclusive?

Yes. Exclusivity can be one-sided (principal does not appoint another agent in the territory) or mutual (agent represents only one principal in the sector).

Can an agent conclude contracts on behalf of the principal without a separate power of attorney?

Yes — the agency agreement itself is sufficient authorisation for the agent to act within the agreed scope. For certain acts (e.g. property purchase) a separate notarial power of attorney is required.

What is the minimum activity obligation for an exclusive agent?

Under an exclusive agency agreement the agent commits to actively promoting products and making commercial efforts. If the agent is passive, the principal can demand remediation or terminate.

Commercial

Agency agreement

Agency agreement — sell through a partner

Define commissions, territory and agent obligations.

Start free Features

GDPR compliant · EU-hosted

Companies with agency agreements grow 22 % faster in new regions

A clear commission structure reduces remuneration disputes by 70 %

The statutory agent compensation upon termination can reach 1 year's average commission income

An agency agreement covers territory, product scope, commission rates, obligations and protection of the client base. AI generates it in compliance with the EU Commercial Agents Directive.

Legal context

Agency agreements are governed by EU Directive 86/653/EEC (Commercial Agents Directive) transposed into national law. The agent has a statutory right to compensation upon termination (up to 1 year's average annual remuneration).

Commercial Code §§ 652–672a; EU Directive 86/653/EEC — statutory compensation on termination (up to 1 year)

Legal basis & glossary

When to use a Agency agreement

When building a distribution network through external agents
When expanding into a new geographic market through a local partner
For B2B product sales through independent sales representatives
When you need exclusive representation for a specific region

What you get

Clear commission structure
Territory definition
Agent exclusivity
Post-termination compensation

How it works

From idea to signature

Clear commission structure

Territory definition

Agent exclusivity

FAQ

Frequently asked questions about Agency agreement

A commercial agent acts on behalf of the principal and concludes contracts in their name. A distributor buys goods in its own name and resells them, bearing the inventory risk.