P.R. Laws tit. 10, § 279
For the purposes of this chapter, the following terms shall have the meaning stated hereinafter, unless another meaning clearly arises from the context:
(a) Sales representative. — An independent entrepreneur who establishes a sales representation contract of an exclusive nature, with a principal or grantor, and who is assigned a specific territory or market, within the Commonwealth of Puerto Rico. It includes the figure known as “manufacturer’s representative”.
(b) Principal or grantor. — A person who grants a sales representation contract to a sales representative.
(c) Sales representation contract. — The agreement established between a sales representative and a principal, through which, and regardless of the way in which the parties establish, delineate or formalize said agreement, the party of the first part commits himself to making a reasonable effort and due diligence in the creation or expansion of a market which is favorable for the products that the principal sells, directed at capturing clientele to offer it a product or service marketed by him in Puerto Rico, and the party of the second part is bound to comply with the commitments that may result from the sales representative’s efforts and coordination and to pay the previously-accorded commission or remuneration.
(d) Just cause. — Noncompliance of any of the essential obligations of the sales representation contract by the sales representative, or any act or omission on his/her part that may adversely and substantially affect the interests of the principal or grantor in the development of the market or the sale of merchandise or services. It shall also be understood that the act of privatizing a program, service or enterprise of the central government or of a public corporation shall constitute just cause to terminate the existing relationship between said program, service or enterprise of the central government, or of a public corporation or its successors and any sales representative who renders its services to the latter, effective on the day the term provided by said contract expires, without having to pay any compensation whatsoever to said sales representative.
History
—Dec. 5, 1990, No. 21, p. 1496, § 1; June 24, 1998, No. 93, § 1.