Thursday, September 3, 2020

Chapter 3. Commercial Travelers and Representatives

 Chapter 3. Commercial Travelers and Representatives

 

Art. 37. – Commercial travelers.

 

1.    A commercial traveler is a person, domiciled at the place where the head office of the business is situate and bound to a trader by a contract of employment, who is entrusted by the trader with visiting clients and offering to them goods or services in the name and on behalf of the trader.

2.    Unless otherwise agreed, contracts entered into by a commercial traveler shall be of no effect unless confirmed by trader.

3.    Commercial travellers are not traders.

 

Art. 38. - Commercial representatives.

 

1.    A commercial representative is a person, not domiciled at the place where the head office of the business is situate and bound to a trader by a contract of employment, who is entrusted by the trader with visiting clients in a specified area and offering to them goods or services in the name and on behalf of the trader.

2.    Unless otherwise agreed, contracts entered into by a commercial representative shall become effective without confirmation by the trader.

3.    Commercial representatives are not traders.

 

Art. 39. - Private Business.

 

1.    Unless otherwise provided in the contract of employment, commercial travellers and representatives may not carry on private business. Where they carry on private business, they shall lose their compensation as provided in Art. 42 and 43.

2.    The provisions of Art. 30 (2) shall apply where commercial travellers and representatives have been authorised to carry on private business.

 

Art. 40. - Acting on behalf of other traders.

 

1.    Unless otherwise agreed, commercial travellers and representative may not act on behalf of traders other than the trader to whom they are bound. Where they act on behalf of other traders, they shall lose their compensation as provided in Art. 42 and 43.

2.    In no case may they act on behalf of a trader selling goods or offering services similar to the goods sold or the services offered by the trader to whom they are bound.

 

Art. 41. - Remuneration.

 

1.    Commercial travellers and representatives shall be paid by salary or on commission or both.

2.    The remuneration shall be fixed by the contract of employment or, where not fixed, by custom.

 

Art. 42. - Compensation in case of termination of contract.  

 

    Where the trader terminates the contract without good cause, commercial travellers and representatives who are bound by a contract entered into for an undefined period of time shall be entitled to fair compensation fixed in accordance with Art. 2583 of the Civil Code.

 

Art. 43. - Compensation on account of clients introduced.

Where a contract entered into for an undefined period of time is terminated by the trader or where a contract entered into for a specified period of time is not renewed by the trader, no fault being attributable to the commercial traveller or representative, the commercial traveller or representative shall be entitled to     compensation equal to the profit derived from the customers introduced or goodwill created or extended by him.

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