The parties to a commercial representation contract are the agent and the contracting authority. The representative has the exclusive right to represent the contracting entity in a given territory, unless the parties have agreed otherwise in writing. The main disorganization of the agent is to manage the client`s operations according to the principal`s instructions. Trust and trust are of the utmost importance to the client in an agency contract. During the activity of the adjudicating entity, the agent is required to protect the interests of the client. This is an obligation that must be taken into account in all agent transactions. In the absence of a written agreement to the contrary, the representative is a single client and the principal representative recruits a single agent in a given territory. This means that in the absence of a written agreement, the parties are required not to compete. In this context, an agent is required not to compete with the client with respect to the Purpose of the Agency and to support the client`s competitors. The agent discovers the client`s business secrets during the agency contract. This is why it owes a duty of confidentiality to the client. The agent is independent and therefore cannot be considered an employee of the client. However, under the agency contract, the contracting entity has the right to instruct the agent on the terms of sale or the sale prices, etc.
Therefore, the agent is required to follow the instructions of the client. The agent is entitled to remuneration for his services while acting as an intermediary or on behalf of the client. The amount of compensation is generally determined under the agency contract. The right to remuneration arises from the performance of the contract between the third party and the client. However, the parties may decide otherwise and, therefore, the agent who entered into the contract may be entitled to compensation, even if the contract is never executed. Unless otherwise agreed, compensation must be paid within three months. In addition, the contracting authority is required to inform the agent of the issues necessary to carry out the agency contract. In addition, the principal should inform the agent that the volume of business may be considerably lower than the agent would normally have expected. If the client does not comply with this obligation, he or she is grounds for legal termination.
The sales agent is entitled to goodwill compensation after the termination of the agency contract, if the following conditions are met. Article 122 TCC, which is taken from the European directive (Article 17 of 86/653/EEC), regulates goodwill compensation, also known as portfolio allowance. If the agent has the exclusive right to represent the client in a specific territory, he is entitled to compensation for non-interference transactions, but it was concluded during the duration of the agency. Similarly, the agent may be entitled to compensation after the termination of the agency contract if it is shown that the transaction between the client and the client was concluded within a reasonable time after the termination and that the real reason for the transaction was the employee`s effort. The form of the agency contract is not necessary. However, if the adjudicative power wants to authorize the agent to act for himself, special authorization must be granted with written agreement. In this case, this special authorization should be registered in the trade register and disclosed in the trade register. This article briefly examines the general characteristics of relations between commercial agencies under Turkish law, including the rights, obligations and commitments of the parties. Contracts of commercial agencies are subject to the provisions of the Turkish Code of Trade (TCC).