{"id":13158,"date":"2026-01-13T13:15:12","date_gmt":"2026-01-13T11:15:12","guid":{"rendered":"https:\/\/martinezsanzabogados.com\/?p=13158"},"modified":"2026-01-13T13:16:59","modified_gmt":"2026-01-13T11:16:59","slug":"customer-compensation-in-distribution-contracts","status":"publish","type":"post","link":"https:\/\/martinezsanzabogados.com\/en\/customer-compensation-in-distribution-contracts\/","title":{"rendered":"Customer Compensation in Distribution Contracts: Requirements and Quantification"},"content":{"rendered":"<p class=\"wp-block-paragraph translation-block\">The <strong>customer compensation in distribution contracts<\/strong> does not arise automatically when the contractual relationship ends. Unlike the agency agreement, the distribution contract lacks specific legal regulation, which has led Spanish case law to recognise, under certain requirements, the analogical application of the principle underpinning Article 28 of the Commercial Agency Contract Act (Ley del Contrato de Agencia, \u201cLCA\u201d).<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">The Supreme Court has acknowledged that, in certain circumstances, the distributor may be entitled to customer compensation, provided that the <strong>required conditions are strictly proven<\/strong> and that such compensation is deemed equitable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Requirements for a distributor to claim customer compensation<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">It is well known that a commercial agent is generally entitled to customer compensation upon termination of the contract, in accordance with Article 28 of the Commercial Agency Contract Act. <strong>art\u00edculo 28 de la Ley sobre Contrato de Agencia<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">In the case of a distributor \u2013 an atypical figure without specific statutory regulation \u2013 such entitlement is not automatic. However, Spanish case law has held that, under certain conditions, the principle underlying that provision may be applied by analogy, so that, upon termination of a concession or distribution agreement, the distributor may also claim customer compensation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This conclusion results from a long-standing doctrinal and jurisprudential debate.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Supreme Court doctrine on customer compensation for distributors<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Particularly relevant is <strong>Supreme Court Judgment No. 1392\/2007 of 15 January 2008<\/strong> (RJ 2008\/1393), issued by the Full Civil Chamber (Sala Primera de lo Civil) for the specific purpose of <strong>unifying doctrine<\/strong>, having acknowledged that prior case law was inconsistent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In that judgment, the Supreme Court held that:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>\u201cThis Chamber maintains its doctrine recognising the possible entitlement to customer compensation upon termination of concession or distribution contracts,\u201d although \u201cthe analogical application of the principle underlying Article 28 of the Commercial Agency Contract Act cannot be based on mimetic or automatic criteria; rather, in each case, the distributor must prove both the effective contribution of clientele and its potential future use by the grantor.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">From this judgment\u2014and subsequent case law\u2014it follows that the Supreme Court <strong>recognises customer compensation in distribution contracts<\/strong>, but not automatically: only where the necessary prerequisites have been previously proven.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">The basis for this entitlement lies both in the analogical application of the principle inspiring Article 28 LCA and in the requirement to perform contracts in accordance <strong>with good faith<\/strong>, usages, and the law under <strong>Article 1258 of the Civil Code<\/strong>. This criterion has been reiterated in numerous subsequent decisions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Deposit (arras) in a sale contract is an amount of money that the buyer delivers to the seller as a signal, guarantee or advance on the transaction. Its purpose and consequences depend on the type of deposit agreed: signing penitential arras, which allow withdrawal by losing or returning double the amount, is not the same as confirmatory or penal arras, where performance of the contract and claims for damages may come into play. That is why, before signing, it is advisable to understand what is being agreed, how the clause should be drafted and what happens if one of the parties fails to perform.<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">What are arras and why are they so important in a property sale<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Arras are a payment of money linked to a sale, usually of property, made before signing the public deed before a notary. In practice, they are used to \"reserve\" the property and record that buyer and seller have a serious intention to complete the transaction within a set period.<\/strong><br>Although many people speak of an \"arras contract\" as if it were a separate document, what matters is not the name of the document but its content. It may be a private sale contract with an arras clause or a preliminary agreement regulating price, deadlines, costs, pending documentation and consequences of non-performance.<\/li>\n\n\n\n<li><strong>Their importance is especially high because the amount delivered is usually significant. In property transactions it is common to agree indicative amounts of between 5% and 10% of the sale price, although there is no mandatory legal percentage. For example, on a property worth \u20ac250,000, arras of 10% would amount to \u20ac25,000.<\/strong><br>For the seller, arras reduce the risk of taking the property off the market without an economic guarantee. For the buyer, they serve to fix essential conditions of the sale and prevent the property from being sold to a third party while financing, registry documentation or notarial signing is being arranged.<\/li>\n\n\n\n<li class=\"translation-block\"><strong>The future benefit of such clientele must be proven.<\/strong><br>It is necessary to show that the manufacturer or grantor will be able to benefit from that clientele after termination of the contract, which requires a reasonable forecast.<\/strong>.<\/li>\n\n\n\n<li><strong>Confirmatory arras act as proof that the contract exists and that the parties have assumed a commitment to sell. In this case, the amount delivered is usually considered part of the final price. If one party fails to perform, the other is not automatically limited to losing or returning the arras, but may demand performance of the contract or claim damages as appropriate.<\/strong><br>Penitential arras are the best known in property sales. They allow either party to withdraw from the contract, but with a clear economic consequence: if the buyer withdraws, they lose the amount delivered; if the seller withdraws, they must return it doubled. This regime is provided for in Article 1454 of the Spanish Civil Code, provided that this type of arras has actually been agreed.<\/li>\n\n\n\n<li><strong>Penal arras function as a penalty clause. Their purpose is to fix in advance an economic consequence in the event of non-performance. Unlike penitential arras, they do not always mean that the party may freely withdraw from the contract. Depending on the wording, the performing party may claim the penalty, demand performance or request compensation if applicable.<\/strong><br>The key is not to confuse withdrawal with non-performance. With penitential arras, a party may withdraw from the contract by accepting the agreed cost. With confirmatory and penal arras, unilateral withdrawal may be considered breach of contract and open the door to wider claims.<\/li>\n\n\n\n<li><strong>For example, if a buyer delivers \u20ac20,000 in penitential arras on a property worth \u20ac200,000 and finally decides not to buy, they will lose those \u20ac20,000. If the seller withdraws, they must return \u20ac40,000. However, if the arras were confirmatory, the seller could try to require that the sale be completed, in addition to claiming damages if proved.<\/strong><br>How an arras clause should be drafted to avoid conflicts<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">An effective arras clause must be clear, complete and consistent with the rest of the contract. It is not enough to state that \"arras are delivered\" or to copy a standard formula. The document must unequivocally express what type of arras is agreed and what the consequences will be if the sale is not formalised.<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Under an agency contract, the amount of customer compensation may not exceed the equivalent of one <strong>annual average of commissions earned<\/strong> during the last five years of the contract, in accordance with <strong>Article 28.3 LCA<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">In the case of a distributor, this rule <strong>does not apply directly<\/strong>, since the distributor does not earn commissions but obtains profit through a <strong>commercial or resale margin<\/strong>\u2014that is, the difference between the purchase price of the product and the selling price to the end customer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With penal arras, the agreed amount acts as a penalty for non-performance. However, it is important to review whether the contract also allows demanding performance or additional compensation. Not all penalty clauses have the same scope, and imprecise wording can end in a judicial dispute over its interpretation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">A practical example helps to see this. Suppose \u20ac15,000 in arras are agreed on a property worth \u20ac180,000 and signing before a notary is fixed at 75 days. If the seller finds another buyer offering more money and refuses to sell, the consequences will not be the same if the arras are penitential, confirmatory or penal. In the first case, they will presumably have to return \u20ac30,000; in the others, they could face a claim for performance or damages.<\/h3>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">The Supreme Court has settled this issue by establishing that, when customer compensation is applicable in distribution contracts, it must be calculated by <strong>reference to the net profit<\/strong> of the distributor, not the gross margin.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">This was expressly stated in Supreme Court Judgment 356\/2016 of 30 May (RJ 2016\/2293), which held that the guiding criterion of Article 28 LCA should be applied to the net profits obtained by the distributor\u2014that is, the portion of profit remaining after deducting expenses and taxes\u2014and not to the gross commercial margin.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Recommendations before signing and frequently asked questions on arras<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Before signing an arras contract, the first recommendation is not to rush. Pressure \"not to lose the property\" can lead to accepting unclear clauses or unbalanced conditions. A signed private contract without review can create important obligations, even if a notary has not yet been involved.<\/li>\n\n\n\n<li>A frequent question is whether arras are mandatory. They are not. The parties may agree them or not, and may also structure the transaction differently. However, in property practice they are very common because they provide security and organise the process prior to the deed.<\/li>\n\n\n\n<li>Another common doubt is whether arras are always returned doubled when the seller breaches. The answer is not always. That consequence belongs to penitential arras when they have been correctly agreed. If the contract does not specify the type of arras or uses unclear wording, it may be necessary to interpret the parties' intention.<\/li>\n\n\n\n<li>It is also frequently asked whether the buyer loses the arras when the bank does not grant the mortgage. It depends on what has been agreed. If the contract does not make the sale conditional on obtaining financing, lack of a mortgage may not automatically release the buyer. Therefore, if the transaction depends on the loan, a specific clause should be included.<\/li>\n\n\n\n<li>As to how arras are reflected in a contract, they must be in writing with the type of arras, amount, method of payment, deadline for execution as a public deed, consequences of withdrawal or breach, allocation of costs, status of charges, pending documentation and obligations of each party until signing.<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>At Mart\u00ednez Sanz Abogados we recommend reviewing each transaction individually, especially when there are large amounts, tight deadlines, buyers awaiting financing, inherited properties, properties with charges or sellers with several titleholders. Prior review can avoid litigation, economic losses and unnecessary delays.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>If you are buying or selling a home and need to draft, review or negotiate an arras contract, specialist legal advice will allow you to sign with greater security. Before delivering money or assuming commitments, make sure the document protects your interests and reflects exactly what you have agreed.<\/em><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">This same criterion has been reiterated in Supreme Court Judgments 137\/2017, of 1 March; 317\/2017, of 19 May; and 944\/2023, of 13 June, establishing this as a fully consolidated jurisprudential criterion.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Maximum limit and determination of the final amount<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">The cited judgments emphasise that the amount resulting from applying the guiding criterion of Article 28.3 LCA\u2014namely, an annual average of the net profits obtained by the distributor during the last five years of the contract\u2014represents the maximum limit of the compensation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">The specific amount to which the distributor may be entitled will be determined by the court based on the evidence produced, provided that the required conditions are found to be met and to the extent that they are proven.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Ultimately, this is a matter of the assessment of evidence in light of the specific facts of the case and how they have been established during the proceedings.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\"><strong>Customer compensation in distribution<\/strong> contracts is a concept recognised by the Spanish Supreme Court, but it is <strong>neither automatic nor general<\/strong>. Its award requires strict proof of the distributor\u2019s contribution of clientele, the grantor\u2019s potential future benefit therefrom, and a quantification based on the <strong>distributor\u2019s net profit<\/strong>, always within the equitable limits that must guide judicial decision-making.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Author: Fernando Mart\u00ednez Sanz.\n\n<br>Lawyer specialising in Commercial Law and distribution contracts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/ayuelajimenez.es\/blog\/indemnizacion-clientela-contratos-distribucion\/\"><\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>La indemnizaci\u00f3n por clientela en contratos de distribuci\u00f3n no surge de forma autom\u00e1tica cuando se extingue la relaci\u00f3n contractual. A diferencia del contrato de agencia, el contrato de distribuci\u00f3n carece de una regulaci\u00f3n legal espec\u00edfica, lo que ha llevado a la jurisprudencia espa\u00f1ola a admitir, bajo determinados requisitos, la aplicaci\u00f3n anal\u00f3gica de la idea que [&hellip;]<\/p>","protected":false},"author":8,"featured_media":13159,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[710],"tags":[],"class_list":["post-13158","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-informacion-de-interes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Indemnizaci\u00f3n por clientela en contratos de distribuci\u00f3n: requisitos y cuantificaci\u00f3n - Mart\u00ednez Sanz Abogados<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/martinezsanzabogados.com\/en\/customer-compensation-in-distribution-contracts\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Indemnizaci\u00f3n por clientela en contratos de distribuci\u00f3n: requisitos y cuantificaci\u00f3n - Mart\u00ednez Sanz Abogados\" \/>\n<meta property=\"og:description\" content=\"La indemnizaci\u00f3n por clientela en contratos de distribuci\u00f3n no surge de forma autom\u00e1tica cuando se extingue la relaci\u00f3n contractual. A diferencia del contrato de agencia, el contrato de distribuci\u00f3n carece de una regulaci\u00f3n legal espec\u00edfica, lo que ha llevado a la jurisprudencia espa\u00f1ola a admitir, bajo determinados requisitos, la aplicaci\u00f3n anal\u00f3gica de la idea que [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/martinezsanzabogados.com\/en\/customer-compensation-in-distribution-contracts\/\" \/>\n<meta property=\"og:site_name\" content=\"Mart\u00ednez Sanz Abogados\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/martinezsanzabogados\" \/>\n<meta property=\"article:published_time\" content=\"2026-01-13T11:15:12+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-01-13T11:16:59+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/martinezsanzabogados.com\/wp-content\/uploads\/2026\/01\/Contratos-Vilches-Abogados-Madrid.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"533\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"eduSEO\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"eduSEO\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/martinezsanzabogados.com\\\/indemnizacion-por-clientela-en-contratos-de-distribucion\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/martinezsanzabogados.com\\\/indemnizacion-por-clientela-en-contratos-de-distribucion\\\/\"},\"author\":{\"name\":\"eduSEO\",\"@id\":\"https:\\\/\\\/martinezsanzabogados.com\\\/#\\\/schema\\\/person\\\/a7470640505ce775d4a135b13b3dc4f0\"},\"headline\":\"Indemnizaci\u00f3n por clientela en contratos de distribuci\u00f3n: requisitos y cuantificaci\u00f3n\",\"datePublished\":\"2026-01-13T11:15:12+00:00\",\"dateModified\":\"2026-01-13T11:16:59+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/martinezsanzabogados.com\\\/indemnizacion-por-clientela-en-contratos-de-distribucion\\\/\"},\"wordCount\":1545,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/martinezsanzabogados.com\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/martinezsanzabogados.com\\\/indemnizacion-por-clientela-en-contratos-de-distribucion\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/martinezsanzabogados.com\\\/wp-content\\\/uploads\\\/2026\\\/01\\\/Contratos-Vilches-Abogados-Madrid.jpg\",\"articleSection\":[\"Informaci\u00f3n de inter\u00e9s\"],\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/martinezsanzabogados.com\\\/indemnizacion-por-clientela-en-contratos-de-distribucion\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/martinezsanzabogados.com\\\/indemnizacion-por-clientela-en-contratos-de-distribucion\\\/\",\"url\":\"https:\\\/\\\/martinezsanzabogados.com\\\/indemnizacion-por-clientela-en-contratos-de-distribucion\\\/\",\"name\":\"Indemnizaci\u00f3n por clientela en contratos de distribuci\u00f3n: requisitos y cuantificaci\u00f3n - 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