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Termination of an agency agreement

Agency agreements may last for an indefinite or a definite period of time.
In the latter case, a provision allowing intermediate termination may be included in the agency agreement.
However, according to Dutch Agency Law the contractual notice period in the agency agreement may not be less than:

  • one month during the first year of the agency agreement
  • two months during the second year of the agency agreement
  • three months during the third and subsequent years of the agency agreement.

If there is no contractual provision regarding termination in the agency agreement, according to Dutch Agency Law the notice period must be four months or more, depending on the duration of the agency agreement.
According to Dutch agency law, termination of the agency agreement can only take effect at the end of a calendar month.
If an agency contract for a definite period of time expires and the relationship continues after this definite period with no further arrangements made, according to Dutch agency law the agency contract will, by operation of law, become a contract for an indefinite period of time with the same terms and conditions that previously existed.