Law No. 27 of 2006 Promulgating the Trading Regulation Law

طباعة
 
Section: b) Agency with commission (305-305)

  • Article 305 

     
    A commission agency is a contract under which an agent legally conducts business under his own name on behalf of the client for a consideration.
    The rules set out in the following provisions in addition to the general rules on commercial agency shall apply to commission agency.
    Obligations of the Commission Agent to the Client Articles 306-311

  • Article 306 

     
    Where a commission agent sells at a lower price or buys at a higher price than that set by the client, the client shall, if he declines the deal, initiate notification to the commission agent of such declining within seven days of receipt of notification of the completion of the deal, otherwise the price shall be deemed to be accepted.
    The client may not decline the deal, if the agent agrees to carry the cost of the price difference.

  • Article 307 

     
    Where the commission agent concludes superior terms to those set by the client, the benefit shall go to the client. The agent shall be committed to submit an account to the client of the actual conditions under which the contract was concluded.

  • Article 308 

     
    Where the commission agent assigned to sell gives a term to the buyer to pay the price or makes the installment for the payment without the permission of the client, the client may demand the agent to pay the entire price immediately. In such case the agent may retain the difference if the deal was done at a higher price. However, the agent may give the term or make the installment for the payment without the permission of the client, if the custom in the region in which the sale took place requires that, unless the instructions of the client oblige him to sell at the current price.

  • Article 309 

     
    Where the client's peremptory instructions require selling at a deferred price set for the agent and the commission agent sold at the current price accelerator, the client shall have the right to either accept the current price or require deferred price at the maturity of the term.

  • Article 310 

     
    The commission agent cannot change the trademarks placed on the goods received by him from the client or to his account. If the commission a variety of goods from one type and sent to him by two different clients, he has to put on all goods a distinctive statement.

  • Article 311 

     
    The commission agent shall not disclose the name of the client unless he is authorized to do so. The commission agent shall not disclose to the client the name of the third party who contracted with him, only if the deal was based on a time limit. In such case, if he refused to disclose the name of others the client may consider the deal as accelerated.

  • Article 312 

    The client shall have to return to the commission agent the expenditures and other amounts incurred for the implementation of the agency, even if the deal has not been done, except in the case of mistake of the commission agent or if they agreed otherwise.

  • Article 313 

     
    Where the commission agent met with some damage due to the implementation of the agency, the commission agent may demand the client for the compensation, unless the damage resulted from the mistake of the commission agent.

  • Article 314 

     
    Where the commission agent deputizes another commission agent to perform the assigned work, the deputy shall have the privilege only to the extent of the debt owed to the original commission agent.

  • Article 315 

     
    The commission agent shall be directly committed to third party that contracted with him. This third party shall also be committed before the commission agent.
    The third party shall have no right to recourse against the client. The client also shall have no right to directly recourse against the third party with a case, unless the law provides otherwise.

  • Article 316 

     
    Where the commission agent assigned to sell becomes bankrupt before taking the price from the buyer, the client may directly demand the buyer to pay the price.
    If the commission agent assigned to sell becomes bankrupt before the delivery of the sale item, the client may demand the seller directly to deliver the sale item to him.

  • Article 317 

     
    The commission agent shall not be a guarantor for the implementation of the obligations of the person who contracted with him, unless it was clearly explained or there is a provision in the law or it is a guarantee which is required by the custom of the region where the activity is being performed. In this case the commission agent shall deserve a special wage and shall be considered as joint guarantor.

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