Moldova's Civil Code amended to strengthen legal framework applicable to commercial agency relationships
The parliament has adopted a draft law amending the Civil Code, aimed at improving the legal framework applicable to commercial agency relationships. The document transposes into national legislation the EU Directive on the coordination of the laws of the member states relating to self-employed commercial agents and ensures a clear, coherent and predictable legal framework for commercial agency agreements.
The bill was drafted to strengthen the legal protection of commercial agents and increase the predictability of contractual relationships. It addresses matters concerning the granting of compensation and damages upon termination of a commercial agency relationship.
The Civil Code has been amended, so that the agreement may prohibit or restrict the party marketing another party’s products from engaging in professional activities after the termination of the contractual relationship (the non-compete obligation).
The adopted draft also establishes the cumulative conditions for providing compensation to a commercial agent upon termination of the commercial agency agreement, the maximum amount of such compensation, the right to damages, as well as cases in which compensation and damages are not granted.
The new legislative provisions will enter into force three months after their publication in the Official Journal.
Communication and Public Relations Directorate of Moldova’s Parliament
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