Cyprus - Andreas Neocleous & Co

CYPRUS
CYP/17
had executed his part of the act. The commission is payable on the last day of
the month following the three-month period during which the relevant right
arose.
The agent loses his right for commission if:
• It is proved that the agreement between the third party and the principal will
not be executed; and
• The non-execution is not due to the principal's fault.
Where the agent's right to commission is lost, he must return any commission he
has already received. In estimating the amount of commission due, the principal
must provide the commercial agent with an account of the owed commissions by
the last day of the month following the three-month period during which the
relevant commissions arose.
This account should contain all the relevant data on the basis of which the
amount of the commissions has been calculated. Further, the commercial agent
is entitled to demand that all information be supplied to him and particularly an
extract of the books which are at the disposal of the principal and which he
needs to verify the amount of the commissions owed. 27
The Regulation of Relations Law does not permit the parties to deviate from the
statutory provisions relating to commission to the detriment of the commercial
agent.
Reimbursement of Agent's Expenses
Every agent has a right against his principal to be reimbursed for all expenses
and to be indemnified against all losses and liabilities incurred by him in the
execution of his authority. Where the agent is sued for money due to his
principal, he has a right to set off the amount of any such expenses, losses or
liabilities unless the money due to the principal is money which was deposited
with the agent for a specific purpose which has failed, or is the balance of
money so deposited which remains after such purpose has been fulfilled.
The Contract Law makes provision for an agent to retain, out of any sums
received on account of the principal, all moneys due to him with respect to
advances made, expenses properly incurred and any remuneration due to him for
acting as agent in conducting the business of the agency. Subject to such
deductions, the agent is bound to pay to his principal all sums received on his
account. 28
Where the agency agreement is contractual, in the absence of an express
agreement to reimburse and indemnify, such a term may be implied, unless it is
clearly excluded.
27 Law Number 51(I) of 1992, s 13.
28 Contract Law, Cap 149, ss 177–178.
(Release 2 – 2013)