The Commercial Agency Contract is essential for businesses seeking to expand their market presence in Belgium through independent commercial agents. This document type is specifically designed to comply with the Belgian Law on Commercial Agency Agreements and EU Directive 86/653/EEC, which provide strict requirements for agency relationships. It should be used when a company (principal) wants to appoint an independent agent to promote and sell their products or services in a defined territory. The contract includes mandatory provisions required by Belgian law regarding commission calculations, notice periods, termination rights, and post-termination compensation. It's particularly important to note that Belgian law provides strong protections for commercial agents, making it crucial to carefully structure these agreements with appropriate legal guidance.
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1. Parties: Identification of the Principal and the Agent with full legal details
2. Background: Context of the agreement and brief description of both parties' businesses
3. Definitions and Interpretation: Key terms used throughout the agreement, including Products, Territory, and Customers
4. Appointment and Scope: Terms of agent's appointment, exclusivity status, and territorial scope
5. Agent's Rights and Obligations: Detailed responsibilities including promotion, reporting, and customer service obligations
6. Principal's Rights and Obligations: Principal's commitments including information provision and support
7. Commission Structure: Calculation method, payment terms, and conditions for commission entitlement
8. Intellectual Property: Usage rights of trademarks, logos, and marketing materials
9. Confidentiality: Protection of business secrets and confidential information
10. Duration and Termination: Contract term, notice periods, and grounds for termination as per Belgian law
11. Post-Termination: Indemnity or compensation provisions, return of materials, and ongoing obligations
12. General Provisions: Standard clauses including notices, amendments, and governing law
1. Non-Compete Obligations: Restrictions during and after the agreement - include when protecting market position is crucial
2. Minimum Performance Requirements: Sales targets and performance metrics - include when specific performance levels are essential
3. Sub-Agents: Rules for appointing sub-agents - include when sub-agents might be needed
4. Data Protection: GDPR compliance provisions - include when personal data processing is involved
5. Insurance Requirements: Specific insurance obligations - include for high-value or high-risk products
6. Stock Holding: Rules for maintaining inventory - include if agent will hold stock
7. Training Requirements: Mandatory training provisions - include for technical or complex products
1. Schedule 1 - Products: Detailed list of products/services covered by the agency
2. Schedule 2 - Territory: Detailed description of geographical territory and any excluded areas
3. Schedule 3 - Commission Rates: Detailed commission structure, calculations, and special rates
4. Schedule 4 - Reporting Templates: Standard forms for regular reporting and commission calculations
5. Schedule 5 - Marketing Guidelines: Guidelines for use of trademarks and marketing materials
6. Appendix A - Performance Targets: Annual/quarterly sales targets and performance metrics
7. Appendix B - Technical Requirements: Technical specifications or requirements for product representation
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