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. My company is buying from a private individual. Does consumer law protect the seller against me? Merely designating a private individual as the seller does not exclude consumer protection. The general definition in Section 52 of the Civil Code asks whether the trader acts in the course of business and the individual outside it; status is not determined solely by who pays the price. Specific rules on consumer sales, withdrawal rights or information duties may, however, have a narrower scope. Each agreement and each rule must therefore be assessed separately when purchasing from individuals, without assuming either full protection or its complete exclusion.
  2. I am buying a car from Czechia. What should I check, and what must the agreement contain? First check the car in Czech registers using its VIN: technical data and inspection mileage, police theft alerts, insurance claim history, and whether the seller really owns it rather than a finance company. Then check the seller, particularly enforcement and insolvency. The agreement should contain representations about origin, condition and third-party rights, the exact transfer of ownership and risk, governing law and the court. Slovak registration requires recognition of the individually imported vehicle; if it is new under VAT law, VAT is paid in Slovakia.
  3. Must an agreement be in writing to be valid? Most agreements are valid orally: Slovak law generally allows freedom of form. However, writing may be required by law, for example for property transfers, or by the parties themselves. If the prescribed written form is missing, the agreement is invalid. Amendments require a distinction between civil and commercial law: in a commercial relationship, merely signing the agreement in writing does not mean that every amendment must also be in writing. In practice, writing is recommended even where the law does not require it, for evidence and certainty.
  4. How does a contractual penalty work, and is it enforceable? A contractual penalty is a monetary sanction for breach of a contractual obligation. It is valid only if agreed in writing with a specified amount or at least a calculation method. The creditor is entitled to it even without loss, but generally cannot claim damages alongside it unless otherwise agreed. A court may reduce an excessively high penalty on application.

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

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