Court upholds principal´s right to conclude contract in agency agreement

Real Estate & Construction

Dr. Martin Foerster, ILO Newsletter vom 2. Oktober 2015

Agency agreements typically differ from other agreements with regard to the way in which agents share risk. As such, agents try to limit their risk by including clauses in agency agreements which entitle them to remuneration even if the principal refuses to conclude the agreement. The Supreme Court recently ruled on such a clause and upheld the principal´s right to choose whether to conclude the envisaged agreement.


Dr. Martin Foerster

LL.M. (LONDON) Partner