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Commercial law. Commission agreement (most important)

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65. COMMISSION AGREEMENT

Under a commission agreement, an entrepreneur is provided with intermediary services.

Commission agreement - consensual, reimbursable and bilaterally binding. Its parties are the committent and the commission agent.

Subject contracts - the commission agent's transactions on behalf of the principal and at his expense. Unlike the attorney in the contract of commission, the commission agent acts on his own behalf, therefore he acquires rights and becomes obligated in a transaction made by him with a third party.

The amount of the commission agent's commission and additional remuneration for delcredere are not essential conditions commission agreements.

The commission agent assumes the execution of the commission order at his own risk, which consists in the fact that if the execution of the commission agreement turned out to be impossible for reasons beyond the control of the committent, the commission agent does not retain the right to commission and reimbursement of expenses incurred.

As a general rule, the conclusion of a subcommission agreement is permissible, unless it is expressly prohibited by the commission agreement. The main commission agent remains responsible to the committent. The entry of the committent into direct relations with the subcommission agent, as a general rule, is permissible only with the consent of the commission agent.

The commission agent's deviation from the instructions of the committent is lawful only if such a deviation is necessary to ensure the interests of the committent and it is impossible to obtain from him prior consent to such a retreat. If a business entity acts as a commission agent, the contract may establish an exemption from the need to obtain the prior consent of the commission agent. In other cases, the condition of the contract on granting the commission agent the right to deviate from the instructions of the committent without a preliminary request is void.

Failure by the committent to fulfill the obligation to release the commission agent from obligations to a third party entails the emergence of the commission agent's right to demand compensation from the committent for the losses caused by such non-fulfillment.

The right of the committent at any time to refuse to perform any commission agreement cannot be limited by the agreement.

Unlike the committent, the commission agent, as a general rule, is not entitled to unilaterally refuse to fulfill the commission agreement concluded for a certain period.

Signs of commission mediation:

▪ based on a commission agreement (Chapter 51 of the Civil Code);

▪ an intermediary (commission agent) acts in civil transactions on his own behalf and at the expense of the principal;

▪ scope of actions within one or several transactions;

▪ the relationship is temporary (one-time) in nature;

▪ an intermediary (commission agent) acts for a fee;

▪ the commission agent bears responsibility as an entrepreneur.

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