The implementation of a cancellation contract is one of the methods used to terminate a contractual relationship between the parties. The advantage over a unilateral declaration of termination by one of the parties is that it ensures that the rights and obligations of the parties are fulfilled under or in connection with the contract, and that it also regulates the post-contractual relations between the parties. On the other hand, a manager does not have the implied power to perform unusual or exceptional acts on behalf of his or her sponsor. Without express permission, an agent cannot sell part of the business, cannot create a new business, change the nature of the operation, create debts (unless the loan is an integral part of the business, such as for example. B in the banking sector) or transfer business premises. For example, the owner of a hotel appoints Andy manager; Andy decides to rename the hotel and commissions an artist to prepare a new logo for the hotel`s stationery. Andy does not have the implicit power to change the name or appeal to the artist, although he is implicitly allowed to use a printer to fill out the supply of stationery – and perhaps make some design changes in the letterhead. As regards distribution relationships, neither the Regulation nor the Block Exemption Notice concerning vertical agreements of the Turkish Competition Authority No 2002/2 allow for prohibitions on competition after the end of the procedure. However, these two provisions provide that the trader may be subject to a non-competition clause for a maximum period of one year, provided that the prohibition (i) relates to goods and services in competition with the goods or services covered by the contract; (ii) is limited to the installation or land in which the trader has worked during the term of the contract, and (iii) is mandatory for the protection of the know-how transferred by the contracting authority to the distributor. Any person who is of legal age and in good health under the law to which he or she is subject may employ an agent.1 Between the contracting entity and the third party, a person may become an agent to be liable to his contracting entity in accordance with the provisions of the law. There is no need to think about setting up an agency[iii]. Several types of commercial agents have been recognized under Indian law, including brokers, auctioneers, stockbrokers, persons responsible for the purchase of sales and insurance agents.
This newsletter focuses on the essential features and contents of cancellation contracts that terminate agency and distribution contracts. While the common principles for both species are exposed, differences relating to these principles are also addressed where necessary. The liability of the contracting entity for the acts of the agent of which the contracting entity had no knowledge or intention shall be designated where the agency contract provides that the Agency may be terminated if one of the parties sends the other written notification of a fixed period. . . .