Law & contractsen
Commercial agent
An independent intermediary mandated to negotiate or conclude sales contracts on behalf of a principal, protected by EU Directive 86/653.
A commercial agent is an independent intermediary permanently tasked with negotiating and potentially concluding sales, purchase or service contracts on behalf of a principal (producer, manufacturer, importer).
Key legal features under EU Directive 86/653:
- Independence: the agent is not an employee and freely organises their activity
- Remuneration: commission on concluded business (typically 3 % to 15 % depending on sector)
- Termination indemnity: right to compensatory indemnity upon contract termination (except in cases of serious fault)
- Notice periods: minimum statutory notice periods
The commercial agent is distinguished from other intermediaries:
- From a broker: the agent has a permanent mandate, the broker acts on a case-by-case basis
- From a distributor: the agent does not resell, they represent the principal
- From an employee: the agent is independent, not subordinate
Commercial agents are particularly suited to export into markets where the company does not wish to establish a subsidiary. They offer rapid market access with minimal investment and variable remuneration linked to results.