P.R. Laws tit. 10, § 279c

2019-02-20 00:00:00+00
§ 279c. Termination of the relationship—Damages

If there is no just cause for the termination of the sales representation contract, for impairing the established relationship, or for the refusal to renew said contract, the principal shall have executed a tortious act against the sales representative and shall compensate him to the extent of the damages caused to him, which amount shall be fixed by taking into account the following factors:

(a) The actual value of all investments and expenses incurred by the sales representative in the performance of his duties, to the extent in which they are not easily and reasonably used for some other activity in which the sales representative is regularly engaged.

(b) The good will of the business, or the part thereof that is attributable to the representation of the merchandise or rendering of the services in question, to be determined taking into account the following terms:

(1) The number of years that the sales representative has been in charge of the representation;

(2) the present volume of the representation of the merchandise or the rendering of the services in question and the proportion it represents in the business;

(3) the Puerto Rican market share represented by said volume;

(4) any other factor that may equitably help to establish the amount of said good will.

(c) The amount of the benefits obtained from the representation of the merchandise or in the rendering of services, as the case may be, during the last five (5) years, or if less than five (5), five (5) times the average of the annual benefits obtained during the last years, whichever they are.

History —Dec. 5, 1990, No. 21, p. 1496, § 4.