Legal Blog

Friday, July 12, 2013

Agency agreements in Curacao

An agent is entitled to commission

Under the Civil Code of Curaçao (Section 7:428), an agency agreement is defined as a contract for a fixed or indefinite period of time between a principal and an agent, whereby the agent agrees, against payment, to mediate in the conclusion of contracts and to eventually conclude these contracts in the name and for the account of the principal, without being subordinate to the principal. 

An agent shall be entitled to a commission for the negotiation of commercial transactions concluded after the sales representation contract has been terminated:

  • if the transaction is mainly attributable to the sales representative’s efforts during the period covered by the sales representation contract and if the transaction was entered into within a reasonable period after the sales representation contract was terminated; or
  • if the third party’s order reached the principal or the sales representative before the sales representation contract was effectively terminated, provided certain conditions are met, for instance that the agent mediated in the conclusion of the order.

It should be noted that the terms “mainly attributable” and “reasonable period” are not defined by the Curaçao Civil Code. In the event that the agency agreement has been terminated and certain conditions are met, an agent may be entitled to goodwill compensation.

Filed under: Commercial by Karel Frielink.



Commenting is not available in this weblog entry.