The Guatemalan Commerce Code, Decree 2-70 of Congress of the Republic of Guatemala, and its amendments include the regulations of agency, distribution and representation agreements of the country.

Commercial Agents are, in accordance with the applicable law, the persons acting permanently, for one or more principals, promoting commercial agreements or executing them for and on behalf of them. Commercial agents may be employed or self-employed.

Individual persons or commercial companies acting as distributors, agents or representatives in accordance to law, shall be registered as such in the Registro de Agentes, Distribuidores y Representantes (Agents, Distributors and Representatives Registry) managed by the Mercantile Registry.

If the distribution relation began before March 11th, 1998 the applicable legislation will be the Decree 78-71, Agency Agreement Law; after this date the Code of Commerce of Guatemala is the applicable legislation.

Termination of the Agreements:

Regarding the termination of these Commercial Independent Agency, Distribution or Representative Agreements, please note that they may only be terminated by:

  • Mutual consent between the parties, in writing
  • Term expiration, if any, and
  • Cases determined by the Code of Commerce.

It is important to note that, in accordance with the applicable law, the causes above mentioned are the only which can provide for the termination of these agreements.

Consider that if there is no "Just Cause" for the termination of the agreement, then the Principal will be responsible for the payment of an indemnification amount.