Contractual provision on the prohibition or restriction of the pursuit of business
The parties may agree to prohibit the agent from pursuing, after the end of the agency contract, either fully or in part, the business of agency for another principal. Such a contractual stipulation shall be valid only if it was made in a written form and if it is related either to the same territory, the same persons or the same goods as the current agency contract.
In case the agency contract ended for reasons attributable to the principal, such a contractual provision shall bind the agent only if the principal agrees to paying him two kind of fees one of which is a termination fee and the other is a monthly fee payable during the whole period of prohibition or restriction of other business pursuits in accordance with such stipulation. The amount of the monthly fees equals the average monthly amount of commission the agent was entitled to in the past five years, or where the duration of the contract was less than five years, the amount equals the average monthly amount of commission he was entitled to during the term of the contract.
The contractual provision prohibiting or restricting the pursuit of the future business may bind the agent for a maximum period of two years following the end of the current agency contract.
The agent who terminated the contract on account of faulty behaviour on the principal's part, is entitled to notify the principal by means of a written declaration, within one month from the date of termination of the contract, that he will not respect the provision on the prohibition or restriction of the pursuit of his business.
Right of retention by the agent
To ensure payment of his claims under the agency contract, the agent has the right to retain the sums collected for the principal under his authorization and the items of the principal which he received either from the principal or from some other person in connection with the contract.
The agent may not claim compensation for general cost and regular operating expenses incurred in the course of business, unless otherwise agreed by the parties. But he is entitled to reimbursement of special expenses incurred on behalf of the principal or on his order or instructions.
Performing duties for another principal
Without prior approval from the principal, the agent is forbidden from conducting and executing the same type of services in the same territory for another principal.
Confidentiality obligations of the agent
The agent is obligated to protect any business, professional and other confidential information of the principal of which he becomes aware in connection with the work he is entrusted by the principal. Confidentiality obligation of the agent will outlive the cancelation or termination of the agency contract. Additionally, agent is liable to the principal if he uses or reveals confidential information about the principal and its business to third parties.
The amount of commission agent is entitled to for conducting services for the principal may be freely determined by the contracting parties.
If the amount of commission is not determined by the contract, the agent is entitled to the amount of commission commonly paid for such type of services in the place where the agent carried out the services for the principal. If the agent acted through his agency for the principal in different places, he is entitled to a commission commonly paid in the place of his domicile or headquarters.
Where it is not possible to determine the amount of commission commonly paid, the agent will be entitled to the amount of commission that would be equitable, given the circumstances of the case, and particularly the number and the value of transactions performed by the agent for the principal and their demanding nature and the scope of the agent’s efforts.
When the agent has under the authorization from the principal collected a principal’s claim from the third person, he is entitled to a special commission out of the amount collected.