A sub-contract is a contract whose purpose is fully or partially in accordance with the performance of a principal contract. This often occurs in service contracts and, in particular, in commercial agency contracts. In this case, the sub-agent is nothing more than a sales agent (…) However, if the agent is deemed to bear a significant financial or commercial risk that goes beyond the inherent variable nature of income, the Agency is not considered to be genuine from a competition law perspective. This means that price control by the client, which are not the recommended prices, is generally illegal and subject to severe penalties. In addition, restrictions on a non-real agent that the agent may target may also be illegal due to a number of different circumstances. On the occasion of a merger, Econocom, the client, and proposed by its commercial agent, SD Lease, the conclusion of a new agency contract modifying the basis and rate of its commissions – the rate of 6% of turnover is replaced by 9% of the gross margin – and includes a (…) In this case, an intermediary had entered into a social contract in which he had to seek out buyers who wished to invest in residential real estate for a fee that was to be paid after the signing of the genuine sales contracts and the obtaining of the funds. A clause in the contract that is provided for the (…) There are three types of financial or commercial risks essential to the definition of an agency agreement for the purposes of Article 101, paragraph 1. First, there are contract-specific risks that are directly related to contracts entered into and/or negotiated by the representative on behalf of the client, such as equity financing.B. Second, there are the risks associated with market-related investments. These are investments that are necessary specifically for the type of activity for which the contracting authority has appointed the agent, that is, which are necessary to enable the agent to enter into and/or negotiate this type of contract.
Such investments are usually sewn, which means that the investment cannot be used or sold for other activities, except with a significant loss, after leaving this field of activity. Third, there are the risks associated with other activities in the same product market, to the extent that the contracting entity requires the agent to engage in such activities, not as an agent on behalf of the client, but for his or her own risk. The contract with commercial agencies is definitely at the heart of this quarter`s case law. Qualification conditions and issues (see ECJ June 4, 2020 V. in advance: N.F.) should not obscure the importance of the issues that normally arise in the course of their execution. A decision of the Court of Justice (…) For the purposes of article 101, paragraph 1, the agreement is referred to as an agency agreement where the representative does not support or assume any risk related to contracts concluded and/or negotiated on behalf of the contracting entity with respect to market-specific investments in this area of activity and other activities that the awarding entity is required to carry out in the same product market. However, risks associated with the provision of agency services in general, such as the risk that the representative`s income will depend on his or her success as an agent or general investments in premises or staff, are not essential to this assessment.