Commissions for German Commerial Sales Agencies

In connection with the relevant § 86 Abs. 1 HGB (German commercial code) problems with the statement of accouts between the parties are often seen in the legal practice.

There are major areas for litigation concerning commission claims in Germany.

Due dates for commission claims

The representative is entitled to all commissions during the contract period. Contratual agreement will prevail should they exist.

In case goods are sold and delivered, the commission is due with the closing of the transactions of the deal.

In case of services the legal situation is more complicated. As those transaction run over a certain time period, the risk of a cancellation of the deal is always existing. The commissions therefore is mostly due after expiry of a certain cancellation period.

Advance payments on commissions

The representative therefore often receives advance payments. The final account settlement takes place at the end of the cancellation period. The agency is confronted with the unexpected situation that commissions have to be paid back.

Provisions for order cancellations

For the risk of an order cancellation the agent should therefore constitute commercial provisions.

Contact legal experts in German agency law

The right to commission in favour of German agents is highly disputed and a far reaching area even for legal experts.