Sales representative
A commercial agent is a self-employed trader who acts as an intermediary for another entrepreneur or concludes transactions on his behalf.
In return, the commercial agent is then entitled to a commission. This is based on the amount of the transaction.
Task of the sales representative
The representative’s task is therefore to potential customers the goods or services of a company and to mediate a business transaction between the manufacturer and the customer.
In most cases, a commercial agent works in a specific area or district and can work for just one company or also for several.
Obligations of a commercial agent
A commercial agent has a number of duties. We list these for you here.
- Concluding and brokering transactions
- Duty of care: This includes, for example, checking the solvency of customers.
- Obligation to notify: Every brokerage & conclusion of a transaction must be reported immediately.
- Duty to provide personal services: It is quite possible that a commercial agent may use an auxiliary person.
- Duty of confidentiality: The representative must keep business and trade secrets to himself both during and after the term of his contract.
- Duty of loyalty: In general, there is no explicit non-competition clause for the representative. It is therefore perfectly permissible to work for other companies and to conclude your own transactions. However, this must not cause any damage to the company. After termination of the commercial agency relationship, a so-called non-competition clause can be agreed.
Rights
Commercial agents not only have obligations, but also rights. We list some of these below.
- He can request the necessary working documents for his work. This includes, for example, price lists, printed advertising material or certain samples.
- The representative may request notification of the acceptance or rejection of a brokered, concluded transaction.
- He has the right to a commission.
- Expenses incurred in the regular course of business are reimbursed if this has been agreed or is customary in the trade.
- He may accept notifications of defects. In addition, he can assert the rights to which the company is entitled to preserve evidence.
- After termination of the employment relationship, the commercial agent may be entitled to compensation on the basis of his continuing services.
Disclaimer
Please note that the texts on this website and the related contributions are provided for general informational purposes only and do not constitute tax or legal advice in the proper sense. For individual cases, we always recommend seeking specific legal advice tailored to the circumstances of the situation. The information is provided to the best of our knowledge and belief, without any guarantee of accuracy, completeness, or validity.
