Selbsteintritt
Self-entry
Selbsteintritt is a concept in German commercial law whereby a commission agent is entitled to act as buyer or seller in its own right rather than concluding a contract with a third party.
Selbsteintritt is a concept under German commercial law, governed by § 400 HGB. It refers to the right of a commission agent to execute an engagement in its own name and for its own account, for instance by purchasing or selling goods itself.
This mechanism is relevant in that it affords the commission agent flexibility in responding to price fluctuations and limits its risks, while the principal retains the economic benefits. In Dutch practice, the arrangement arises primarily in cross-border trade relationships with German counterparties.
The right must generally be conferred by contract or must follow from the nature of the engagement.
“The German commission agent decided to exercise its right of self-entry when market prices rose sharply.”
Need legal advice?
Schedule a free consultation with one of our specialists