- Agents’ Entitlement to Commission in respect of Repeat Transactions (Rigall Arteria Management v Bank Handlowy w Warszawie, Opinion of Advocate General Ćapeta of the European Court of Justice)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Commercial analysis: Article 7(1) of Council Directive 86/653/EEC provides: ‘A commercial agent shall be entitled to commission on commercial transactions concluded during the period covered by the agency contract: (a) where the transaction has been concluded as a result of his action; or (b) where the transaction is concluded with a third party whom he has previously acquired as a customer for transactions of the same kind’. Advocate General (AG) Ćapeta considered that Article 7(1)(b) is a non-mandatory rule. It 'serve[s] as an aid in drafting the contract, indicating possible solutions as to how the parties may resolve certain issues' and 'offer[s] the parties a list of choices while not precluding others'. Consequently, the parties may choose whether to include, exclude or modify the right under Article 7(1)(b) of Council Directive 86/653/EEC. In due course, the Court of Justice will hand down its judgment in this case. This will have implications for the negotiation and interpretation of agency contracts. Written by Fiona Petersen, barrister at Twenty Essex.
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