The concept of commission trade and the role of commission agents in early modern Europe presents a complex and often confusing narrative. Historians have struggled to define this crucial component of trade, as the boundaries between commission agents, brokers, factors, and other intermediaries were not always clearly demarcated. While the term ‘commission agent’ may seem straightforward, its historical interpretation depends largely on the broader economic and legal context of the period.

A contemporary definition?

In the early modern period, several types of agents were known but not demarcated clearly. One way of dealing with this problem could be to focus on the agent as a more general function rather than a clearly delineated profession. The need for a clear distinction of the commission agent and his trade only emerged towards the end of the eighteenth century, when there was more interest in codifying mercantile law as a separate discipline. The Dutch lawyer Joannes van der Linden defined commission trade as the ‘arrangement of the purchase and sale of goods (…) for a customary or contractually agreed commission’. He clarified that the commission agent was not liable for the non-payment of goods unless explicitly stated.

The distinction between commission agents and other intermediaries became more pronounced with the Code de Commerce in 1807, which defined the commission agent as someone who acted in their own name, but on behalf of a principal. This distinguished them from factors, who operated under a power of attorney on behalf of another. The commission agent also appears in later legal codes, such as the Dutch Wetboek van Koophandel (1838). From the formulations in these codes, it is possible to distill the commission trade as a structure in which the agent acts in his own name (and is thus bound to his counterparty) but does not bear the economic risk of the transactions (acting on behalf of his principal).

Commission agents, factors, and brokers: What is in the name?

Historians, however, have often adopted their own definitions, which do not always align with the aforementioned two legal aspects. Oscar Gelderblom, for example, portrays commission trade as a loosely organised system in which agents handle money and goods in exchange for small commissions. When using such a broad definition, the work of hostelers, factors, and brokers can be regarded as part of commission trade. Others, by contrast, have tried to single out the commission agent. With regard to early modern Antwerp, Wilfrid Brulez has argued that commission agency enabled less wealthy merchants to access new markets. Its flexibility made it more attractive compared to the more rigid structure of factors serving in a firm.

For Amsterdam, it is often argued that large scale commission trade appeared only in the second half of the seventeenth century, as commission agents replaced factors stationed abroad. Implicitly, this argument is based on a hard demarcation line between commission agents and brokers, as the latter were already present in large numbers in the late sixteenth century. Nevertheless, this distinction in particular is difficult to uphold. Unlike commission agents, brokers were expected to mediate impartially between parties in a transaction. However, sixteenth-century regulations suggest that brokerage in Amsterdam originated as an offshoot of commission trade. Despite official regulations prohibiting brokers to conduct transactions in their own name, brokers were regularly observed in own-account trading alongside their brokerage. Lastly, brokers, like commission agents, were often remunerated with a percentage-based fee, further blurring the line between their legally delimited profession and economic role in practice.

Conclusion

The commission agent as a historical concept is a chameleon-like figure, adapting to different economic and legal contexts. To understand commission trade, historians must adopt a broad and flexible definition that captures various forms of business representation during the early modern period. Whether acting in their own name or on behalf of a principal, commission agents were crucial to European trade, navigating complex networks of goods, money, and legal relationships across borders.

Author: dr. Marco in ‘t Veld