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.
You engaged another company to arrange a commercial matter for you, for instance to handle suppliers, manage orders or conclude contracts on your behalf. The cooperation has stopped working and you want to end it, but the contract says nothing about termination, or says only something general. Under a mandate contract governed by the Commercial Code (Act No. 513/1991 Zb.), the answer is favourable to the mandator: you may terminate at any time, but the mandatary is entitled to payment for what they have already properly carried out.
The mandator may terminate at any time
A mandate contract rests on trust. The mandatary arranges the matter for your account and in accordance with your instructions (Sections 566 and 567), so the statute allows the mandator to end the relationship without stating a reason and without a notice period:
The mandator may terminate the contract at any time, in part or in whole.
— Section 574(1) of the Commercial Code (unofficial English translation)
Unless the notice specifies a later effective date, it takes effect on the day the mandatary learned or could have learned of it (Section 574(2)). From that day, the mandatary must not continue the activity covered by the notice. They must, however, alert you to the measures needed to prevent imminent damage arising from the activity being left unfinished (Section 574(3)). If the mandatary is, for instance, negotiating a contract for you, it is worth choosing the date of the notice so that you are able to take the negotiations over.
What you will pay the mandatary
Termination does not extinguish the entitlement for work the mandatary has already carried out:
For activity properly carried out before the notice takes effect, the mandatary is entitled to reimbursement of the costs incurred under Section 572 and to a proportionate part of the remuneration.
— Section 574(4) of the Commercial Code (unofficial English translation)
The costs under Section 572 are those the mandatary incurred necessarily or purposefully, where they are not already included in the remuneration. The phrase “a proportionate part of the remuneration” raises the most questions of interpretation. The statute does not define it, so it is generally assessed by reference to how much of the agreed activity was properly carried out before the notice took effect. It helps if the contract divides the remuneration into stages or if the activity is reported on an ongoing basis. Where no amount of remuneration has been agreed, the mandatary is entitled to the remuneration usual for comparable activity at the time the contract was concluded (Section 571(1)). Unless the contract provides otherwise, the entitlement to remuneration arises on the activity being properly carried out, regardless of whether it produced the expected outcome (Section 571(2)).
When the mandatary gives notice
The mandatary is bound more strictly. Under Section 575(1), they may terminate with effect at the end of the calendar month following the month in which the notice was delivered to you, unless the notice indicates a later time. If an interruption of their activity would cause you damage, they must alert you to the measures that need to be taken. If you cannot take them, even with the help of others, and you ask the mandatary to do so, they must take them themselves (Section 575(2)). For activity between the notice and its taking effect, they are entitled to reimbursement of costs and to a part of the remuneration proportionate to the result achieved (Section 575(4)).
What to agree in advance
Sections 574 and 575 are not among the provisions from which Section 263(1) prohibits departure. The contract may therefore modify them, and in long-term cooperation it is worth doing so:
- a notice period for the mandator as well, where you need the mandatary to complete or properly hand over work in progress,
- a method of calculating the remuneration on early termination, for instance by stages or by hours worked, so that “a proportionate part” does not become the subject of a dispute,
- a duty to hand over materials and to report on work in progress as at the date the notice takes effect.
A different regime applies to brokerage. Where a brokerage contract does not set a period for concluding the brokered contract, either party may end it by notifying the other (Section 650). The broker’s entitlement to commission may nevertheless materialise after it has ended; the details are discussed in our article on commission for commercial agents and brokers.
If you are ending the cooperation or merely preparing the contract, send it to us. Through mandate and brokerage agreements we assess what the mandatary is entitled to on termination and propose wording under which ending the cooperation does not end in a dispute over remuneration.
This answer provides general information on the law as at 12 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.
