Commission

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A commission agent, who is party to a commission agreement, enters into contracts in his own name but on account of a consignor.



When are commission agreements typically applied?

The Danish Act on Trade Commission regulates commission. The act contains mandatory provisions on the agent’s right to contract on his own account but otherwise only contains optional provisions. Although commission is rarely used in Denmark, it is still often used in the trading of securities and other financial instruments, where the commission agent is typically allowed to enter into contract on his own account with the consignor. The Danish legislation concerning securities contains a number of consignor safeguards regulating this situation where the commissioner is effectively on both sides of the deal.

 

 

The above does not constitute legal counselling and Moalem Weitemeyer Bendtsen does not warrant the accuracy of the information. With the above text, Moalem Weitemeyer Bendtsen has not assumed responsibility of any kind as a consequence of a reader’s use of the above as a basis of decisions of considerations.