Agency Agreement Swiss Law


Swiss law defines as an agency contract legal provisions that involve the provision of services, but which are not formal employment contracts. Section 404, which applies to agency contracts, stipulates that this type of contract can be terminated immediately. This is particularly the case where the supplier has terminated the distribution contract for a reason that can be invoked by the distributor, for example in cases. B breach of contractual obligations or poor performance on the part of the distributor. Yes, section 418g CO provides that the representative is entitled to the agreed or customary commission for all transactions that he facilitated or concluded during the term of the contract. This rule is imperative and therefore cannot be repealed in advance by the parties. Unless otherwise written agreement is reached, the sales agent is also entitled to the agreed or customary commission for all transactions made by the client during the Agency`s relationship without the representative`s involvement, but with the clients he has purchased for such transactions, as well as for transactions made with clients of an exclusive sector or clientele during the agency relationship. Single branding contracts are generally not a problem if they are concluded for a limited period of time of no more than five years and if the market share of both parties does not exceed 30%. Minimum sales quotas can in principle be imposed on the distributor. However, there are restrictions on that freedom, which are determined by the principle of abuse of law and by the principle that no one can be limited to a degree contrary to the law or public morality. Such excessive agreements are (in part) not in the law. If agreed minimum selling rates represent 80% or more of a distributor`s requirements for a particular product, the rules for exclusive sales contracts must be respected. The proposed legislative changes apply only to future contracts.

These include amendments that will be concluded after the legislative amendments come into force. There is therefore no need to act immediately on existing contracts. If the legislative amendments were to be adopted, the parties would then have the opportunity to guarantee legal certainty in the event of different termination contracts. End-of-life commission, but only if it is expressly provided for in the Agency`s contract. The end-of-rights commission is the right of a representative to collect commissions for transactions concluded within a reasonable period of time after the closing of the Agency`s contract. Relevant transactions are essentially work done by the representative during the Agency`s contract and concluded within a reasonable period of time from the end of the agency. As part of contractual freedom, the parties may define in the distribution agreement the conditions under which a party may be responsible for the execution and absorption of the costs of a recall. The rules on cartels and abuse of dominance are mainly enforced by ComCo, which can impose administrative sanctions on any company that participates in an illegal agreement or behaves illegally. The penalty imposed can be up to 10% of the turnover achieved in Switzerland by the failing company in the previous three years (Article 49a of the Agreements Act). Most service contracts are governed by the law of Swiss agencies. This is because Swiss law does not provide for separate provisions for the provision of services for remuneration, except for employment contracts.

Due to the size and diversity of this industry, a wide variety of contracts are covered by agency law.