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NEWSLETTER 2013
264
Concerning the fee stipulated under Article 539 of the TCO, the
commission agent is entitled to commission on execution of the transaction
or failure to execute it for a reason attributable to the principal. Where
transactions could not be executed for other reasons, the commission
agent is entitled to remuneration for his endeavors only to the extent
provided for by local custom.
Article 540 of the TCO sets forth that the commission agent shall
forfeit his right to the commission if he has acted against good faith
and especially if he indicates to the principle a higher price for what is
purchased or a lower price for what is sold. If the price is misrepresented,
the principle has the right to take action against the commission agent
himself as buyer or seller for the actual price.
The commission agent is granted a right of lien by Article 541 of the
TCO. Pursuant to this article, the commission agent may use the right of
lien on the price of goods sold or on goods purchased.
Pursuant to Article 542 of the TCO, where the goods on commission
remain unsold or the order to sell is withdrawn and the principal fails to
take them back or otherwise dispose of them within a reasonable time, the
commission agent may apply to the court to have them sold at auction.
However, if the goods are listed or have a specific market value or have a
value less than the costs to be incurred, the judge may decide to sell the
goods through other way.
Pursuant to Article 543 of the TCO, unless otherwise instructed by
the principal, a commission agent instructed to buy or sell goods, bills of
exchange or other securities with a quoted exchange or market price is
entitled, in his own capacity as seller, to deliver the goods he is instructed
to buy or, in his own capacity as buyer, to purchase the goods he is
instructed to sell. In such cases, the commission agent must account for
the exchange or market price that applied at the time the instruction was
given and is entitled to both the usual commission and reimbursement of
the expenses normally incurred in commission business. However, the
commission agent must inform the principle about such transactions on
the same day.
Pursuant to Article 544 of the TCO, where the commission agent is
permitted to act of his own account and he notifies the principal that the