Commission – when is it due?
Where the Commercial Agency Regulations apply
Under Regulation 10 of the Commercial Agency Regulations:
(1) Commission is due as soon as "and to the extent that" –
(a) the principal (P) has "executed the transaction"; or
(b) P "should, according to his agreement with the third party, [i.e. the customer] have executed the transaction"; or
(c) "the third party has executed the transaction".
(2) Commission "shall become due at the latest when the third party has executed his part of the transaction or should have done so if P had executed his part of the transaction, as he should have".
(3) Commission "shall be paid not later than on the last day of the month following the quarter in which it became due, and unless otherwise agreed the first quarter shall run from the date the agency contract takes effect".
Any agreement "to derogate from (2) and (3) [but not (1)] above to the detriment of the agent" will be void.
The words "...and to the extent that..." in (1) above probably mean that P is required to pay the agent (A) commission on part shipments.
The above provisions mean, arguably, that...............
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