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Doing Business in the Netherlands 2012 - American Chamber of ...

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In 2013 <strong>the</strong> Consumer Authority will merge with <strong>the</strong> OPTA (Dutch<br />

Post and Telecommunications Authority) and <strong>the</strong> NMa (<strong>the</strong> Dutch<br />

competition authority) <strong>in</strong>to a s<strong>in</strong>gle overarch<strong>in</strong>g supervisor.<br />

8.5 Agency Agreements<br />

A commercial agent is a person or company that mediates aga<strong>in</strong>st<br />

payment with respect to <strong>the</strong> conclusion <strong>of</strong> contracts and, possibly,<br />

concludes those contracts <strong>in</strong> <strong>the</strong> name and for <strong>the</strong> account <strong>of</strong> <strong>the</strong><br />

pr<strong>in</strong>cipal.<br />

Dutch agency law is based on EC Directive 86/653/EC and is<br />

substantially mandatory <strong>in</strong> nature, particularly those provisions aimed<br />

at protect<strong>in</strong>g <strong>the</strong> agent. For example, mandatory m<strong>in</strong>imum notice<br />

periods apply and an agent is <strong>in</strong> pr<strong>in</strong>ciple entitled to receive goodwill<br />

compensation upon term<strong>in</strong>ation <strong>of</strong> <strong>the</strong> agency agreement.<br />

Term<strong>in</strong>ation <strong>of</strong> an agency agreement may be subject to prior approval<br />

<strong>of</strong> <strong>the</strong> Dutch Employee Insurance Agency (UWV WERKbedrijf) <strong>in</strong><br />

case a so-called “small” agent is <strong>in</strong>volved (i.e., an <strong>in</strong>dividual who acts<br />

as an agent for not more than two pr<strong>in</strong>cipals and who does not employ<br />

more than two assistants).<br />

Parties are free to determ<strong>in</strong>e <strong>the</strong> govern<strong>in</strong>g law <strong>of</strong> <strong>the</strong>ir agreement.<br />

However, a choice for foreign law will not set aside <strong>the</strong> so-called<br />

Dutch “overrid<strong>in</strong>g mandatory rules.” To date, <strong>the</strong> rules regard<strong>in</strong>g<br />

goodwill compensation and <strong>the</strong> special term<strong>in</strong>ation protection<br />

apply<strong>in</strong>g to “small” agents have been considered as such overrid<strong>in</strong>g<br />

mandatory rules.<br />

F<strong>in</strong>ally, EU and Dutch competition rules may also have an impact on<br />

agency agreements. Please refer to chapter 10.<br />

8.6 Distribution Agreements<br />

A distribution agreement differs from an agency agreement <strong>in</strong> that <strong>the</strong><br />

distributor purchases products or services from <strong>the</strong> supplier and resells<br />

<strong>the</strong>m to third parties <strong>in</strong> its own name and for its own account.<br />

66 Baker & McKenzie

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