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ducer company terminates the contract on just grounds, the agent shall
not be entitled to claim the goodwill indemnity. It must be noted that a
provision in an agency contract establishing a waiver by the agent from
the right to claim goodwill indemnity is not valid. In other words, even
though the agency contract explicitly states that the agent will have no
rights regarding any goodwill indemnity whatsoever, the court may
still rule in favor of the agent asking for goodwill indemnity.
The claims must be raised within one year as of the termination of
the agency contract.
Non-Compete Obligation and Indemnity
Pursuant to the NTCC, unless otherwise agreed in writing, the
principal shall not appoint more than one agent at the same time with-
in the same territory and same area for the same field of activity.
Moreover, an agent shall not act on behalf of competitors who are
located at the same place or region or are active in the same commer-
cial area. In other words, the non-compete obligation shall apply to the
agency during the term of the contract unless otherwise agreed by the
parties.
On the other hand, under the law, the agent is not bound by a non-
compete obligation after the term of the agency contract. Another mat-
ter which is regulated by the NTCC for the first time is the rules on
non-compete agreements after the term of the contract which is set
forth by article 123. In order for limiting the activities of an agent after
the termination of the agency contract, the parties shall agree in writ-
ing and the agreement covering the rules of the mutual understanding
shall be signed by the principal and delivered to the agent. This kind of
non-compete agreement can only set forth for an additional period of
two years after the termination or expiry of the agency contract and it
can only be relevant to the territory and customer group provided to the
agent and the subjects of the agreements that the agent is entitled to
intermediate. The principal shall pay a reasonable compensation to the
agent for the non-compete limitation. The principal may waive the
non-compete limitation before the termination of the agency contract.
In such case, the principal will not be under the obligation to pay com-
pensation after the passing of six months upon its waiver. In the event
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