Agency Agreement Termination

This practice note examines the events and situations that could terminate an agency agreement and the consequences for the parties concerned of the termination of an agency. This practice note does not take into account the consequences of the termination of a commercial agency, for which: Termination of a commercial agency. An agency may be terminated by the parties on the basis of an agreement on this matter or by acts of the other party that are attributable to the refusal (see practical references: termination and expiry of contracts and refusal). Written agency agreements should, in principle, limit the contractual freedom of the contracting parties in several respects, almost all of which are in favour of the representative, any minimum period and applicable termination period, offences for which the contract may be terminated and the specific provisions applicable after termination, if the provisions are applied. Even if the termination of the contract is not in dispute, the client may be required to make a substantial payment to the representative. This should be considered at an early stage. A relationship with an agency can be terminated by the parties if they feel that the relationship is not progressing in a mutually beneficial way. A real estate agent and her client work together to sell a house. If the agency and the client want to follow separate paths, they can do so. In many states, this decision must be accompanied by a tally of money or property that has changed ownership during the relationship. In addition, both parties must respect the confidentiality of all confidential information that has been shared.

Responses vary considerably depending on the application of commercial agents (directive) 1993 (regulations) (click here to see the accompanying article and this article is divided into two parts). It is precisely where they apply that contractors must think very carefully before terminating an agency. As far as customer transfer is concerned, representatives and traders are subject to different regulations. At the end of the agency contract, for whatever reason, the representative is required to transfer his clients to the contracting entity within the relevant area and to cooperate and assist the contracting entity in the implementation of a smooth and effective transition. It should also be noted that a representative`s right to compensation or compensation is unenforceable unless the agent communicates his principle within one year of the date of termination that he intends to assert his right.