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Case Studies | Can compensation still be claimed if a contract termination prevents obtaining remuneration?
【Case Background】
After the death of Xiaode's father, a piece of land was left to be inherited by Xiaode and his two brothers. Due to the complex inheritance procedures, the three brothers entrusted a scribe to handle the inheritance registration and to help sell a piece of the land. However, after several days of deliberation, Xiaode and his brothers decided not to sell the land and to terminate the commission contract with the scribe. Unexpectedly, in hopes of receiving a substantial fee from the sale of the land, the scribe disregarded the brothers' decision to terminate the contract, proceeded to handle the inheritance registration on their behalf, and took the land deed without returning it. Outraged, Xiaode and his brothers sought legal help from our firm.
【Our Firm's Practical Experience】
According to the stipulations of the commission contract and Article 549, Paragraph 1 of the Civil Code, the principal may terminate the commission relationship at any time, regardless of whether there is compensation or a valid reason. However, the scribe cited Article 549, Paragraph 2 of the Civil Code, which states that if one party terminates the contract at a time disadvantageous to the other, they may be liable for damages, unless the termination was due to reasons not attributable to that party. The scribe claimed that the actions of Xiaode and his brothers caused him to lose a substantial fee.
One of the key issues in this case was whether the scribe could claim compensation from Xiaode and his brothers for the commission he would have earned. Legal research by our firm found that the termination of a commission contract, regardless of timing, does not entitle the agent to claim damages for compensation that could have been earned but was not due to the termination.
Ultimately, our firm successfully won the case, not only exempting Xiaode and his brothers from paying damages to the scribe but also recovering the land deed for them.
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