THE LEGAL STATUS OF THE SALES REPRESENTATIVE
The Sales representative is a merchant within the meaning of the Commerce Act. He mediates in the occupation of another trader in the course of its operations, in which he can be fitted with an authorization or he can act as an indirect representative.
Legaly the sales representative is indipendent of the trader with whom he cooperates. The relations between them are governed by a contract for commercial representation. The contract must be concludet in writing. The written form is a requirement for validity of the contract, it does not only serves to prove the conclusion of the contract. With the contract is defined as the subject and the region of the sales representative, as well as the internal relations between him and the merchant.
The sales representative is entitled to payment for all transactions made by him or with his collaboration with clients which he drew, for the type of the transactions and for the period of his contract with the trader. Remuneration shall be paid even for transactions that have been prepared by the representative, but not concluded, unless this is due to reasons that can not be attributed to the trader.
The sales representative is free to cooperate with different vendors, but only on condition that they are not competing with each other. The sales representative can be agreed with the trader to be his only sales representative.
In carrying out the cooperation, according to Art. 52 of the Commercial Code, the sales representative must keep the trade secrets and the commercial prestige of the trader.