Text consolidated by Valsts valodas centrs (State Language Centre) with amending laws of

Section 44. Further Transfer of a Commercial Power of Attorney

A person with a commercial power of attorney may transfer the power of attorney granted to him or her further to another person only if he or she has been specifically granted such rights.

(2) A commercial agent shall transfer to the principal all necessary information and documents. A commercial agent has a special duty to inform the principal without delay regarding each concluding of a transaction or its preparation for concluding.

(3) A commercial agent shall perform his or her duties with the due care of a diligent merchant and comply with the reasonable instructions of the principal.

(4) An agreement which is in contradiction with the provisions of this Section shall be void.

Section 48. Duties of a Principal

(1) A principal shall transfer to the commercial agent documents (samples, drawings, price lists, advertising brochures, transaction regulations and others) which are necessary for the commercial agent to perform his or her duties.

(2) A principal has a special duty to notify a commercial agent without delay, regarding:

1) his or her consent of such transactions which the commercial agent has prepared for concluding, or regarding refusal to conclude such a transaction;

2) the non-performance of such transactions which the commercial agent has concluded or has prepared for concluding;

3) a significant decrease in the volume of transactions if the principal anticipates such a decrease in comparison with the volume upon which the commercial agent could usually rely.

(3) An agreement which is in contradiction to the provisions of this Section shall be void.
Section 49. Remuneration of a Commercial Agent
(1) If remuneration has not been contracted for, a commercial agent has the right to receive such remuneration as is normally paid in the relevant area for the concluding of the same or similar transactions. If there is no such a standard, a commercial agent has a right to a reasonable remuneration, which shall be determined taking into account all the circumstances associated with the relevant transaction.

(2) A remuneration or its part payable to a commercial agent, which fluctuates according to the number or value of the relevant transactions, is a commission.

(3) The provisions of Sections 50 to 52 of this Law in relation to commercial agent remuneration shall be applied insofar as the remuneration in full or in part is paid in the form of a commission.

Section 50. Rights of a Commercial Agent to Commission

(1) A commercial agent has a right to commission on a transaction, which is concluded during the period that the commercial agency contract is in effect, if such transaction has been concluded as a result of his or her action, or also with a person whom the commercial agent has previously acquired as a client for transactions of the same kind.

(2) If a commercial agent has been entrusted to work within a specific geographical territory or with a specific group of clients, he or she has a right to commission also on such transactions, which during the period that the commercial agency contract is in effect, without his or her participation, are concluded with a client who belongs to such geographical territory or group of clients.

(3) In relation to transactions, which are concluded after the commercial agency contract has expired, a commercial agent has a right to commission only if:

1) the transaction has been concluded primarily because of his or her activities which were performed during the period that the commercial agency contract was in effect, and such transaction was concluded within a reasonable period of time after the commercial agency contract expired; or

2) prior to the expiration of the commercial agency contract, the commercial agent or the principal had received an offer from a third party regarding the concluding of such a transaction, in respect of which the commercial agent has a right to commission in accordance with the provisions of Paragraph one or two of this Section.

(4) A commercial agent does not have a right to a commission in accordance with the provisions of Paragraph one or two of this Section, if it in accordance with the provisions of Paragraph three of this Section, is due the previous commercial agent, except in the case, when special circumstances justify the equitable sharing of the commission between these commercial agents.

Section 51. Coming into Effect of a Term for the Payment of a Commission

(1) A commercial agent has a right to commission as soon as and to the extent the principal has performed the transaction. The persons may also agree regarding different provisions, however, at the moment when the principal has performed the transaction, the commercial agent has a right to an appropriate advance payment, which shall be paid not later than on the last day of the next month. Irrespective of such an agreement, the commercial agent has a right to commission as soon as and to the extent the third party has performed the transaction.

(2) If a principal has performed a transaction, but it is clear that the third party will not perform the transaction, the right of the commercial agent to commission is terminated. In such case, the commercial agent has a duty to return the amounts already received.

(3) A commercial agent has a right to commission also when it is clear that the principal has not fully or in part performed the transaction, or also has not performed the transaction in such a way as it was concluded. The right of a commercial agent to commission in the case of non-performance of the transaction shall terminate only then if the cause of such non-performance was circumstances independent of the principal.

(4) A commission shall be paid not later than on the last day of the month in which, in accordance with the provisions of Section 52, Paragraph one of this Law, the principal has a duty to calculate the commission due to the commercial agent.

(6) Agreements which are in contradiction to the first sentence of Paragraph two of this Section, as well as the provisions of Paragraphs three and four, if it worsens the situation of the commercial agent, shall be void.