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

Section 52. Calculation of Commission

(1) A principal has a duty to calculate, each month the amount of commission due a commercial agent. The calculation period may be extended not longer than up to three months. The calculation shall be performed without delay, but not later than within a period of one month following the end of the calculation period.

(2) A commercial agent receiving the calculation may request an extract from the accounts regarding all transactions, for which he or she has a right to commission. A commercial agent also has a right to request information which is of significant importance in respect of the right to receive a commission, the coming into effect of its payment terms and the calculation of the commission.

(3) If a commercial agent is refused an extract from the accounts, or also if there have arisen justified doubts regarding whether the calculation or the extract from the accounts is correct or complete, the commercial agent may request that the principal allow, pursuant to his or her choice, the commercial agent or a sworn auditor selected by them to become acquainted with the accounting and other documents insofar as is necessary to determine the correctness or completeness of the calculation or the extract from the accounts.

(4) Agreements, which revoke or restrict the rights of a commercial agent referred to in this Section, shall be void.
Section 53. Del credere
(1) A commercial agent who undertakes to guarantee the performance of the obligations of a third party (the other party to a transaction), has the right to special remuneration (del credere). An agreement that revokes these rights in the future shall be void.

(2) The guarantee referred to in Paragraph one of this Section may only pertain to specific transactions, or also to such transactions with specific third parties which the commercial agent has concluded or the concluding of which he or she prepared. A guarantee contract shall be concluded in writing.

(3) The right of a commercial agent to del credere arises at the moment of the concluding of the relevant transaction.

[14 February 2002; 22 April 2004]
Section 54. Reimbursement of Costs
A commercial agent may request the reimbursement of costs, which have occurred in the course of his or her commercial activity, only if it is normally so accepted within the scope of commercial rights.

Section 55. Statute of Limitations

The statute of limitations for claims arising from a commercial agency contract shall be four years, counting from the end of that calendar year in which they arose.

Section 56. Right to Retainer

(1) An agreement in which a commercial agent relinquishes in the future a lawful right to retainer shall be void.

(2) After the expiration of a commercial agency contract, a commercial agent may retain documents transferred for their use only in relation to the commission (remuneration) payable to him or her, or the reimbursement of costs associated with his or her commercial activities.
Section 57. Notice of Cancellation of a Commercial Agency Contract
(1) If a commercial agency contract is entered into for an indefinite time, each of the parties to the contract may cancel the commercial agency contract, observing the following terms for notice of cancellation:

1) one month, if the commercial agency contract is cancelled in its first year of activities;

2) two months, if the commercial agency contract is cancelled in its second year of activities;

3) three months, if the commercial agency contract is cancelled in its third year of activities; or

4) four months, if the commercial agency contract is cancelled in its fourth or subsequent years of activities.

(2) Agreements regarding shorter terms of notice of cancellation shall be void. If longer terms of notice of cancellation are contracted for, the term of notice of cancellation specified for the principal may not be shorter than the term of notice of cancellation specified for the commercial agent.

(3) If it has not been contracted for otherwise, the commercial agency contract shall be noticed at the end of the calendar month.

(4) A commercial agency contract, which is entered into for a specified time period, and which both parties continue after the expiration of the contracted for time period, shall be considered to be have been entered into for an indefinite time period. In determining the length of the term of notice of cancellation in accordance with Paragraphs one and two of this Section, the total length of the contractual relations shall be taken into account.

(2) If the immediate notice of termination of the commercial agency contract has given rise to such actions for which the other party is liable, then they shall have a duty to compensate the losses, which have occurred in relation to the cancellation of the contract.

Section 59. Right to an Indemnity or Compensation for Losses

1) the principal even after the cancellation of the commercial agency contract gains substantial benefits from transaction relations with new clients which were attracted by the commercial agent;

2) the commercial agent in connection with the cancellation of the commercial agency contract loses the right to a commission or remuneration, which he or she would have had in respect of transactions already concluded or to be concluded in the future with clients attracted by him or her if the commercial agency contract relations were continued;

3) the payment of indemnity, taking into account all the circumstances, shall be expected from the principal on the basis of fairness.

(2) Within the meaning of Paragraph one, Clauses 1 and 2 of this Section, the attraction of new clients shall mean such significant increase in volume in relation to transactions with the present clients of a principal, which in economic terms is equivalent to the attraction of new clients.

(3) The amount of indemnity may not exceed the average annual commission or other average annual remuneration, which is calculated for the last five of the years of activities of the commercial agent. If the commercial agency contract relations have existed for a shorter period of time, the average annual commission or other average annual remuneration shall be calculated for this shorter time period.

(3¹) A commercial agent has the right to compensation for losses caused due to the termination of a commercial agency contract, especially to compensation for unearned expenses and investments which the commercial agent has performed upon the proposal of a principal in fulfilling the commercial agency contract.

(4) A commercial agent shall not have the right to claim indemnity or compensation for losses if:

1) he or she has cancelled the commercial agency contract, except for cases when the actions of the principal have given a substantiated cause for a notice of termination, or also the commercial agent is unable to continue his or her activities due to old age or illness;

2) the principal has cancelled the commercial agency contract for such a significant cause, the basis of which is an action of the commercial agent who is at fault; or

3) on the basis of an agreement between the principal and the commercial agent a third party has replaced the commercial agent in the commercial agency contract relations. Such an agreement may not be concluded prior to the cancellation of the commercial agency contract.

(5) The parties may not agree regarding waiver of the rights specified in this Section to request the indemnity or compensation for losses prior to the expiry of the commercial agency contract. The claim for indemnity or compensation for losses is subject to a limitation period of one year after the expiry of the commercial agency contract.