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Commercial agency agreements: When does an entitlement to dissolve the contractual relationship immediately exist?

Commercial agency agreements create ongoing obligations. Under Austrian law, it is the case that any ongoing obligations can be dissolved immediately if an “important reason” exists. Contractual provisions which limit, or even exclude, entitlement to dissolve the contractual relationship on such grounds immediately are not valid.

Sec. 22 of the Austrian Commercial Agency Act (HVertrG) lays down that commercial agency agreements can be ended at any time, and without adhering to a period of notice, by either contracting party if “important reasons” for ending a contract exist. “Important reasons” within the meaning of Sec. 22 Commercial Agency Act (HVertrG) exist if the maintaining the contractual relationship - or, to put it more precisely, adhering to the period of notice - is unreasonable for one of the contracting parties. What is important is that a significant reason exists!

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