Dissolving the agency agreement
There are two different groups of situations for which it is desirable for the principal or commercial agent to turn to the courts to ensure the agency contract comes to an early end by dissolving it.
The first ground on which the parties can dissolve the agreement is circumstances that can be considered an urgent reason. This concerns circumstances of such a nature that the party wishing to terminate the agreement cannot reasonably be required to maintain the agreement, even temporarily. Consider, for example, the bankruptcy of the commercial agent or the appointment of a second commercial agent by the principal, while he/she had exclusive authority under the agency agreement.
Request to court
Terminating the agreement for an urgent reason is a risk for that party. It is for this reason that the possibility has been created for the parties, without terminating the agreement themselves, to turn to the court with a request to declare the dissolution immediately or after a short period of time.
Change of circumstances
The second ground on which the parties can dissolve the agreement is a change in circumstances of such a nature that fairness demands the agreement be ended immediately or after a short period of time. In addition to dissolution on this ground, there is also the option of dissolving the agreement on the basis of unforeseen circumstances.
Dissolution on the basis of one of the aforementioned grounds, namely on the basis of an urgent reason or because of a change in circumstances, must be requested by petition to the competent sub-district court judge.
Liability for urgent reasons
If the other party can be blamed for the urgent reason, that party is liable for damages. This claim has a short period of limitation; it expires one year after the fact that the claim arose. This concerns one year after the dissolution pronounced by the court. In addition, the party liable for damages may also be sued on other grounds. For example, on the basis of non-performance. After all, if that party does not fulfil its contractual obligation, it is obliged to compensate for any damage if the shortcoming can be attributed to it.
Compensation in the event of a change of circumstances
If the sub-district court dissolves the agreement due to a change in circumstances of such a nature that fairness demands the agreement be ended, the court may also award compensation. This compensation must be paid, possibly in instalments, by the party whose behaviour justifies the dissolution.
This clause, which provides two grounds for the judicial dissolution of an agency contract, is mandatory law. The parties cannot deviate from this. If the parties do so anyway, such a deviating clause is null and void.