Principal

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Principal is someone who entrusts a commission agent to buy or sell goods or securities in their own name, but for the account of the principal (see commission business ).

right

Under German law, the commission agent has the following obligations after the execution transaction in accordance with Section 384 (2) HGB :

  • He must provide the principal with the necessary information and give an account of the execution transaction; name the person of the third party.
  • He must give the principal everything he has received to carry out the commission ( § 675 , § 667 BGB ) and from the agency ( § 384 HGB). The purchasing agent has to transfer ownership of the purchased goods to the principal or to assign the right to transfer and to return an unused purchase price advance. The sales commission agent must transfer the money received to the principal, if he has received it in cash, in accordance with Section 929 of the German Civil Code, or assign the purchase price claim against the third party that has not yet been fulfilled in accordance with Section 398 of the German Civil Code. He has to transfer back ownership of unsold goods.