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- represent the principal in respect of preventive and/or protective
measures referred above; which authority covers the right to
represent the principal before courts; and
- collect and receive payments in respect of the goods or services
from third parties personally contracted by himself.
Pursuant to article 108 of the NTCC, in cases where an agent acts
without authority or exceeds the authority granted, the principal may
immediately give consent to the relevant transaction negotiated and/or
concluded by the agent. If such consent is not given, the agent will be
responsible for the transaction on his own behalf and account.
Termination of Agency Contracts
In case of agency contracts with indefinite term is three months,
each party, who request to terminate the contract, shall provide an at
least three months prior notice period before the effective date of any
contemplated termination. Agreements for a definite period of time
shall automatically terminate upon lapse of the contractual term, unless
the parties agree on an automatic renewal system. In any case, any
party may rely on just grounds to immediately terminate the agency
agreement.
Other than bankruptcy, death, restriction of the capacity which are
referred to rules of the NTCO; incidents that may constitute just
grounds for termination are not specifically defined in the NTCC;
however, according to the Supreme Court of Appeal’s decisions, the
following reasons may,
inter alia
, be considered as just grounds for
termination of agency contracts:
In the event that one of the parties to the contract,
- discontinues or becomes obliged to cease its activities for any
reason for an unreasonable period;
- engages in any activity causing harm to the other party, whether
directly or indirectly; and
- makes late payments in spite of written notice.
In addition, the parties to an agency contract may also mutually
agree on other just grounds on the condition that such causes are not
against to the mandatory provisions of the law.
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