Semen v Deutsche Tamoil [2009, ECJ]

Although it was the Germans who advocated for an indemnity to be payable upon the termination of an agency agreement, The European Court of Justice rejected that the German method calculating an indemnity should be adopted. The german method provided for a payment of the lower of the agent’s lost commission and an equitable sum.

Instead, the value that the agent has bought to the principal from which benefit continued to be derived is to be evaluated, moderated and capped in accordance with regulation 17(4): not more than the agent’s average yearly commission over the last 5 years.

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Posted in Commercial Law Revision Notes.

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