Commercial agents do not enjoy the same level of contractual freedom as exclusive distributors. Under the Danish Commercial Agents Act, a number of agreements cannot be concluded in advance if the agreement puts the commercial agent in a less favourable position than is required by law. This relates, for example. B, the right to a commission from the commercial agent and can lead to cases where what is considered agreed does not really apply. The trade agent may have a better legal status than is stipulated in the treaty. It is important to know that such provisions can be used later against a party in the treaty. If the parties were overly optimistic in the market assessment, thus making a minimum sale agreement impossible, this could lead to the client obtaining an „easy way out“ of the contract without the commercial agent actually violating the obligations. Unlike the exclusive distributor, the sales agent is first entitled to financial compensation upon termination of the agency contract, if and to the extent that the sales agent has brought the new principal customers or significantly increased the volume of business with existing customers. Trade agents operating in Denmark must be registered in the Central Trade Register (CVR), where all companies (ApS, A/S) or liability companies (I/S) are registered. As a general rule, VAT registration with the tax authorities is not necessary for the sales agent, since the manufacturer is the party that enters into the agreement and receives payment from customers. The producer collects and pays VAT. As a first step, agents who enter into agreements on behalf of the client do not fall within the scope of competition law. In this case, the commercial agent is considered an integrated part of the distribution unit of the awarding entity and acts with respect to other intermediaries mandated by the awarding entity.
The client therefore remains a competitor in the market, which uses the agent only as a enforcement link in the market.