On April 18 2013 Parliament approved amendments to the Civil Code (Law 7850/1994) which introduced, among other things, new provisions on agency agreements. The amendments to the Civil Code entered into force on September 1 2013.

The approved amendments and additions have resulted in more specific and detailed provisions on:

• the remuneration of agents;
• the freedom to contract between the principal and the agent;
• the damages relief due to the agent in case of termination of the relationship with the principal; and
• the warranty agreement made between the agent and the principal guaranteeing that the client will make payments.

Pursuant to Article 953 of the code, in cases where the parties have not agreed on the agent's remuneration, the latter has the right to receive remuneration equal to that received by other agents operating in the same place. Article 953 provides that if no such customary practice is in place, the remuneration will be determined by considering all aspects of the contract and according to the number and value of the actions performed. This amendment is intended to protect the legal position of the agent, as it specifies the conditions regarding the determination of remuneration. It thus completes the previous provisions of the law, which did not set down such conditions.

Another amendment relates to the former Article 956(2), now Article 954 of the Civil Code. It concerns the agent's right of remuneration when a contract is concluded directly between the principal and the client in the geographic area where the agent has the exclusive right of operation.

Pursuant to the former Article 956(2), the agent's remuneration was not obligatory, but was rather subject to the parties' will when concluding the contract. After the amendment, every time that a contract is concluded directly between the principal and the client within the agent's operating area, the agent will have the right to remuneration and any contrary agreement of the parties is held invalid.

Further, Article 961 of the Civil Code was amended. This article now provides that the agent may conclude a warranty agreement with the principal to guarantee the client's ability to pay the price of the goods that it has bought. Such agreement shall be in writing and may extend only to explicitly determined contracts for which the agent is operating. This amendment is designed to better regulate the relationship between the agent and the client.

For further information please contact Elona Xhepa at Boga & Associates by telephone (+355 4225 1050), fax (+355 4225 1055) or email (exhepa@bogalaw.com).The Boga & Associates website can be accessed at www.bogalaw.com.

"This article was originally edited by, and first published on, www.internationallawoffice.com - the Official Online Media Partner to the IBA, an International Online Media Partner to the ACC and the European Online Media Partner to the ECLA. Register for a free subscription at www.internationallawoffice.com/subscribe.cfm."