If the commercial agent contract is terminated prematurely, if the contract is concluded for a specified period, the exclusive distributor is entitled to damages of the estimated commission up to the date on which the contract would have been terminated if it had been terminated correctly. It is important to bear in mind that the right to compensation is given if the commercial agent does not inform the procuring entity, within one year of the termination of the commercial agent contract, that he will seek compensation. In the event of early termination of the agency contract, the agent is entitled to compensation for the damage suffered by such termination (which, if the contract is for a fixed period, corresponds to the amount of commissions that the agent would have received up to the normal date of termination of the contract). The agent`s right to compensation also applies in the event of non-renewal of the contract, in which case the agent should be compensated for the loss of profits. However, the staff member loses his right to compensation if the contract is terminated by the staff member for reasons other than the age or illness of the staff member or by the client for breach or material misconduct (serious misconduct) of the staff member. It is important to be aware that such provisions may subsequently be used against a party in the treaty. If the parties have been overly optimistic about their assessment of the market, thus making a minimum sales agreement impossible, the client can obtain a “simple outcome” of the contract without the commercial agent actually breaching the obligations. Commercial agent contracts (and the activity of the commercial agent) are strictly regulated in France. The agent enjoys significant legal protection and commercial agent contracts must be concluded with caution in order to protect both the interests of the agent and those of the client. Most legal provisions relating to the status and protection of commercial agents are binding and do not have to be the subject of a contractual agreement. In the context of the agency, the remuneration is usually calculated as a percentage of 8 to 15% of the turnover of the commercial agent. Unlike the exclusive distributor, the commercial agent is first entitled to financial compensation upon termination of the agent contract if and to the extent that the commercial agent has appealed to the main customer or has significantly increased the volume of transactions with existing customers.
If the contract concluded between the commercial agent and the contracting entity contains an exclusive right of the commercial agent to effect the sale of the goods concerned, the commercial agent may be subject to higher workload requirements, since the contract excludes the procuring entity from the sale of its product by other means. . . .