Termination and Rescission of the Agreement

Agency agreements that are valid until further notice have a statutory minimum notice period, which increases from one month in the first year of term to 2 months in the second year, 3 months in the third year and so on, up to no more than 6 months. It is not possible to agree upon shorter notice periods in the agency agreement. It is possible to agree upon longer notice periods, but even then, the notice period to be observed by the principal shall not be longer than the notice period of the agent. Additionally, it is possible to agree that the period of notice to be observed by the agent is capped at three months after the third year of the term.

If a party of an agency agreement has a material reason to do so, it shall be entitled to rescind the agreement with immediate effect. Such material reason is deemed to be an act or an omission of a party, which would make it unreasonable to require that the other party maintains the contractual relationship.