Legal Q&A · Commercial Contracts

Our commercial agency agreement has ended. Is the agent still entitled to commission on later transactions?

Law as at 5 September 2026

Short answer

Possibly. The Commercial Code grants commission after termination where a transaction results mainly from the agent's activity and takes place within a reasonable period, or where the third party's order arrived before termination. This rule can be varied or excluded by agreement. Alongside it, however, the indemnity under Section 669 is mandatory and cannot be waived in advance. The agent must assert that right within one year of termination.

The commercial agency agreement has ended, but transactions the agent developed continue to close for months. Commission on those deals is often the first post-termination dispute, and the Commercial Code (Act No. 513/1991 Coll.) gives a more nuanced answer than either party expects.

Which transactions still attract commission?

After the agent’s obligation ends under Section 668 or Section 670, the commercial agent is also entitled to commission if:

a) the transaction was concluded mainly as a result of the agent’s activity and within a reasonable period after termination;

b) in accordance with Section 659a, the principal or agent received the third party’s order before termination;

c) the third party’s obligation was performed only after termination.

— Section 671 of the Commercial Code (unofficial English translation)

In practice, a transaction arising mainly from the agent’s work and concluded shortly after termination attracts commission, as does a transaction based on an order received during the agreement. The Act does not define a reasonable period: this depends on the goods or services and the sales cycle, and the agent must prove it. The rule derives from Directive 86/653/EEC, which links commission rights to termination regardless of its method. In practice, therefore, expect the same assessment for notice, mutual agreement and withdrawal.

What can be agreed differently?

Section 671 is not among the mandatory provisions listed in Section 263(1), so the parties can agree their own rule: a precise number of months instead of a reasonable period, the transactions covered by trailing commission, or complete exclusion. We recommend addressing this expressly when entering into the agreement. Silence leaves the court to decide reasonableness later in light of the circumstances.

The indemnity cannot be avoided

Distinguish trailing commission from the indemnity under Section 669. It belongs to an agent who brought in new customers or substantially developed business from which the principal continues to benefit after termination. The provision is mandatory (Section 263(1)); it cannot be waived in advance or hidden within ordinary commission. The amount is capped at average annual commission calculated over the preceding five years, and the right ends if not asserted against the principal within one year of termination (Section 669(5)). The Court of Justice of the EU also confirmed its mandatory nature in C-381/98 Ingmar: choosing non-EU law does not remove the protection of an agent operating in the Union. Protection against post-termination client diversion is discussed in commercial agents’ non-compete clauses.

How we can help

We set out trailing commission and indemnity rules in commercial agency agreements and distinguish them from mandate and brokerage agreements, which follow different rules. If the agent has already asserted claims, we assess their merits and take over court representation. Having the agreement assessed before termination is cheaper than a year of uncertainty afterwards.

This answer provides general information on the law as at 5 September 2026. It does not constitute legal services or replace an assessment of an individual case. The details of your situation may differ. Book a consultation to discuss them.

More legal questions

All questions and answers
  1. We want to end a mandate contract. When does the notice take effect and what must we pay the mandatary? As the mandator you may terminate a mandate contract under the Commercial Code at any time, in whole or in part; unless the notice specifies a later date, it takes effect on the day the mandatary learned or could have learned of it. The mandatary is, however, entitled to reimbursement of necessary and purposefully incurred costs and to a proportionate part of the remuneration for the activity properly carried out until the notice takes effect. The mandatary may also terminate, but their notice takes effect only at the end of the calendar month following the month in which it was delivered to you.
  2. We gave goods to a commission agent to sell. Who owns them until they are sold, and what if the buyer does not pay? The goods remain yours until a buyer acquires them; the commission agent does not become their owner. The agent, however, concludes the contract with the buyer in their own name, so you generally have no direct rights against the buyer, and an unpaid price must be enforced by the agent for your account or the claim assigned to you with your consent. The agent guarantees payment by the buyer only where they have undertaken this in writing or have breached your instructions as to whom to contract with.
  3. Will contracts concluded before the new Civil Code takes effect be governed by the new statute? Under the government bill, generally not. Relationships arising from contracts concluded before the effective date, including the consequences of their breach, are to continue to be governed by the existing legislation; the parties will, however, be able to agree in writing that their relationship moves under the new statute. This is a bill that the National Council has not yet passed, and today both the Civil Code and the Commercial Code apply in their existing wording.
  4. What will change for leases of business premises under the new Civil Code bill? The government bill repeals Act No. 116/1990 Zb. on the lease and sublease of non-residential premises and replaces it with a lease of business premises set out directly in the Civil Code. It expressly regulates indexation of rent, the monetary deposit and the landlord's lien, and allows compensation for the customer base to be agreed on termination. Until the National Council passes the bill, Act No. 116/1990 Zb. applies, and leases concluded before the effective date would, under the bill, remain governed by the existing legislation.

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Mgr. Patrik Tulinský, LL.M. Czech and Slovak attorney · SAK 300422 · ČAK 19654

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