Document background
The Agent Commission Agreement is a critical document used to establish and govern the relationship between a company (principal) and its commercial representatives (agents) under Danish law. This agreement is particularly important when a business wants to expand its market presence through independent agents rather than employed salespeople. The document must comply with the Danish Commercial Agents Act, which implements EU Directive 86/653/EEC, providing specific protections for commercial agents. It details commission structures, payment terms, territorial rights, performance expectations, and termination provisions. The agreement is essential for businesses operating in Denmark or choosing Danish law as their governing law, as it provides legal certainty and clear operational parameters for both parties while ensuring compliance with mandatory provisions of Danish agency law.
