DOING BUSINESS IN COSTA RICA
PROTECTION FOR REPRESENTATIVES AND DISTRIBUTORS
By José Antonio Muñoz , Arias & Muñoz
CHARACTERISTICS OF “THE LAW”
What is the current legislation about Protection of Representatives of Foreign Firms?
As part of Costa Rica’s commitments in DR-CAFTA, the law for the Protection of Representatives of Foreign Firms, (“the law”), underwent a significant modification in late 2007.
In Costa Rica, distribution and representation/agency relationships may now be established for a definite term. Additionally, parties may unilaterally terminate the relationship at any time without a justified reason by simply sending the other party prior notice, so long as this is specified in the contract.