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Agency Agreement In Spanish

September 8, 2021 | By More

Any employer who wishes to conclude a contract with an agent shall take into account the impact of the obligations entrusted to him, the law of which applies to this contract (Art. 10 LAA), and must above all respect the independence with which the agent carries out commercial transactions. Where it is established that the employer intervenes in particular in the way in which the agent works, it is considered that there is dependency and that there is therefore an employment contract rather than an agency contract. As stated above, the agent is also entitled to specific compensation related to the costs incurred. This is the case where a commercial agent contract of indefinite duration is terminated by the contracting entity and such termination has the consequence that the contractor cannot recover the costs it has incurred as a result of the instructing party. The agency law is very short, but clear in its treatment of limitations on the agent`s ability to compete with the principal once the agency contract is terminated. It prohibits restrictions of competition which may be imposed more than two years after the end of the agreement. If the agreement has a duration of less than two years, the non-competition clause can only last a maximum of one year. The Agencies Act requires that the non-competition clause be covered by a written agreement and that its scope be limited to a geographical area and its respective products, or the Agencies Act is very specific with regard to the jurisdiction applicable in the event of a dispute under a commercial agent contract: the competent courts are those of the agent`s domicile. This provision is intended to ensure that foreign companies that intend to use agents to enter the Spanish market cannot escape the guarantees provided for in the Agencies Act.

Any agreement between a foreign client and a Spanish representative providing that disputes are tried by courts outside Spain is annulled by the Spanish courts. Among the critical concepts of the following definition, as used by the Spanish courts to identify an agency contract and distinguish other legal situations (e.g. employment.B, distribution or franchising) are the following points: e. The client must compensate the agent in accordance with the terms of his agreement. . . .

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