Commercial agents are individuals, who may be part of a commercial agency, hired by a company to represent one or more principals within an organization. Typically, they will seek out and acquire business on behalf of his principals. Furthermore, they are generally compensated based on a percentage of the sales revenue. A commercial agency contract predetermines their commission amount in a commercial agency contract executed by both parties.
Commercial Agency Contract
A commercial agency contract is a written agreement that defines the relationship between an agent and his principals. The commercial agency agreement will outline the obligations, interests and authority levels authorized to the agent. Furthermore, commercial agents may require a certain level of management by the principals. This is to ensure an agent represents the principal’s best interests in each transaction.
Commercial Agents Law
This law protects the agents and the principals in the contractual relationship when there is a breach in the commercial agency agreement. For example, a commercial agents’ breach can release the principal from obligations outlined in the commercial agency contract. You can enforce the commercial agency agreement in recognized law if contractual issues arise between the entities.