ABSTRACT

Generally, the commercial agent will be remunerated by a commission, being a percentage of the net invoice price of the products sold through him or of the cash received by the principal from those sales. The commercial agency agreement as drafted may, however, give the principal the right in certain situations and at his discretion unilaterally to vary, say, the rate of commission or the range of transactions on which it can be earned or the range of products allocated to the commercial agent or some other discretion. Part III, the part of the Agency Regulations which deals with the commercial agent's remuneration, consistently with other parts of the Agency Regulations, follows the terms of the Directive closely. The commercial agent's right to receive commission is, under the Agency Regulations, rather wide. In relation to "repeat business", commission is due to the commercial agent on "repeat business" "of the same kind" as that for which he originally acquired the customer.