What information reporting obligations does the commercial agent have vis-à-vis the principal?
Sec. 5 of the Austrian Commercial Agency Act (HVertrG) explicitly stipulates information reporting obligations of the commercial agent vis-à-vis the principal. The “notifications required” in the course of the commercial agent’s activity are to be made to the principal. The commercial agent is, in addition, obliged to let the principal know about any transaction acquired without delay. These reporting obligations are, pursuant to Sec. 27(2) Commercial Agency Act (HVertrG), mandatory, i.e. they cannot be excluded by way of a special contractual regulation. The contracting parties may specify these general obligations more precisely in the commercial agency agreement. In this respect, it is to be noted that the independent nature of the work of the commercial agent may not be undermined through such specification.
Pursuant to Sec. 5 of the Austrian Commercial Agency Act (HVertrG), the commercial agent is obliged to preserve the interests of the principal when carrying out its work. The obligation to make “required notifications” is, consequently, to be broadly construed. For example, it needs to be explained to the principal if the commercial agent has any illnesses of an extended duration.
A report is to be given on any transaction acquired, within the meaning of Sec. 5 Commercial Agency Agreement (HVertrG). This obligation also includes clarifying any efforts already made and assessments of the opportunities to conclude transactions. Ongoing reporting on the day-to-day business, on the other hand, does not fall under the obligations of the commercial agent vis-à-vis the principal.