The Parties’ Obligations

The agent must to the best of his/her abilities promote the sales of the agreed products in the agreed territory, and attend to the interests of the principal. It is also possible to agree upon a minimum sales obligation for the agent.

An agent shall comply with the principal’s instructions, and provide the principal with information regarding offers, contracts and other important matters, such as the market situation in the agent’s territory. The agreement should also include a provision regarding the agent’s obligation to comply with the principal’s prices and terms of delivery and payment.

An agent may also be granted the right to appoint sub-agents. In such case it should be provided that the agent remains responsible for acts and omissions of the sub-agents.

The principal must provide the agent with samples, models, price lists and other materials necessary for the agent to take care of his/her tasks. The principal must also notify the agent without delay of the principal’s intention to accept or reject an offer, as well as of material reductions in the principal’s operations.

The principal must also provide the agent with a commission statement, specifying the contracts concluded during the term of the statement, as well as the accrued amount of the agent’s commission. The commission statement must be provided monthly, unless the parties have agree on provision at longer intervals. However, the statutory deadline for provision of the commission statement is no later than one month from the expiry of the quarter during which the agent’s entitlement to the provision has arisen.