Handelsvertretung

Handelsvertretung, or commercial representation, is a form of agency under German law in which a Handelsvertreter acts in the name and on behalf of a principal to negotiate or conclude contracts for the sale or purchase of goods or services in a defined territory or for a defined customer base. The agent is typically self-employed and operates under a contract that specifies the scope of authority, the geographic or customer scope, and the basis for compensation.

The legal framework is the Handelsgesetzbuch (HGB), particularly sections 84 to 92. The Handelsvertreter earns a commission (Provision) on transactions that the agent initiated or significantly contributed to, with payments governed by the contract and applicable statutes. The principal is generally obligated to account for and pay the commissions, and the agent has duties of loyalty, confidentiality, and timely reporting.

Termination and post-termination rights: Either party may terminate the contract with notice under the rules of the HGB. Upon termination, the agent may have a status-based entitlement to compensation (Ausgleichsanspruch) for the value of the customer base or goodwill developed during the relationship, subject to statutory criteria and limits (as provided by § 89b HGB).

Distinctions and use: Handelsvertretung is a form of non-employee representation, distinct from employment contracts and from brokers. It is commonly used by manufacturers, wholesalers, and service providers to extend market reach, while the agent’s authority and compensation are governed primarily by the contract and the HGB.

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