CHAPTER IV

Conclusion and termination of the agency contract
Article 20
1
For the purposes of this Directive, an agreement restricting the business activities of a commercial agent following termination of the agency contract is hereinafter referred to as a restraint of trade clause.
2
A restraint of trade clause shall be valid only if and to the extent that:
a
it is concluded in writing; and
b
it relates to the geographical area or the group of customers and the geographical area entrusted to the commercial agent and to the kind of goods covered by his agency under the contract.
3
A restraint of trade clause shall be valid for not more than two years after termination of the agency contract.
4
This Article shall not affect provisions of national law which impose other restrictions on the validity or enforceability of restraint of trade clauses or which enable the courts to reduce the obligations on the parties resulting from such an agreement.