Sales Agency Agreement Termination

The indemnity obliges the principal to compensate the agent for the commissions that the Agency would have received if the agency had not been terminated. The amount of the indemnity is limited by the regulation to the average annual remuneration (calculated over the previous five years). This approach is generally inferior to a compensation approach. First, there may be a fixed-term contract: a fixed-term contract is, if the client and the commercial agent agree that their relationship will continue for a predetermined fixed period, at the end of which the relationship automatically passes to another temporary period, otherwise it automatically expires, or, and third possibility, is then maintained indefinitely (in accordance with Regulation 14 of the Commercial Agents Regulations) and: (like a contract for an indefinite period) could only be terminated in the future in accordance with the minimum provisions for denunciation laid down in Regulation 15 (2) (see below). Under UK and EU law, you must inform the agent if you believe the turnover will be less than the agent could reasonably expect. If you don`t, you may be able to cover any of the agent`s income. If you want to be able to sell in an area through these channels, your agreement must say so. You also need to agree for which sales in this area the agent receives a commission – all sales or only those generated by the agent. In Southern Australia, it is customary to instruct a real estate agent to sell his property under a sole agency agreement.

This means that while you have a signed agreement with an agent, you cannot sign with another agent, nor can another agent contact you to sell your property. Under current law, an agreement on the sale of residential real estate in Southern Australia cannot exceed 90 days. If your contract expires and the property has not been sold, you have the right to extend with the same agent or alternatively use the services of another agent. A third possibility (and very similar to the second option described above) is the termination of the sales agency after a minimum notice period of several months, the minimum duration of which reflects the duration of operation of the sales agency but does not end on the last day of the last month of the notice period – this would reflect Regulation 15 (4). This provision allows the parties to „agree in another way“ that the end date of a termination of a contract for an indefinite period must not correspond to the end of the month. Example: – The agent can do the same thing – for example, if an agent loses sales because you can`t fulfill orders….