31.12. 86 Official Journal of the European Communities No L 382/17 COUNCIL DIRECTIVE of 18 December 1986 on the coordination of the laws of the Member States relating to self-employed commercial (86/653/EEC) THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular Articles 57 (2) and 100 thereof, Having regard to the proposal from the Commission (1), Having regard to the opinion of the European Parliament (2), Having regard to the opinion of the Economic and Social Committee (3), Whereas the restrictions on the freedom of establishment and the freedom to provide services in respect of activities of intermediaries in commerce, industry and small craft industries were abolished by Directive 64/224/EEC (*); Whereas the differences in national laws concerning commercial representation substantially affect the conditions of competition and the carrying-on of that activity within the Community and are detrimental both to the protection available to commercial agents vis-a-vis their principals and to the security of commercial transactions; whereas moreover those differences are such as to inhibit substantially the conclusion and operation of commercial representation contracts where principal and commercial agent are established in different Member States; Whereas trade in goods between Member States should be carried on under conditions which are similar to those of a single market, and this necessitates approximation of the legal systems of the Member States to the extent required for the proper functioning of the common market; whereas in this regard the rules concerning conflict of laws do not, in the matter of commercial representation, remove the inconsistencies referred to above, nor would they even if they were made uniform, and accordingly the proposed harmonization is necessary notwithstanding the existence of those rules; Whereas in this regard the legal relationship between commercial agent and principal must be given priority; Whereas it is appropriate to be guided by the principles of Article 117 of the Treaty and to maintain improvements (*) O] No C 13, 18.1.1977, p. 2; O] No C 56, 2.3.1979, . p.S. (2) OJ No C 239, 9.10. 1978, p. 17. (3) OJ No C 59, 8. 3. 1978, p. 31. (*) OJ No 56, 4. 4. 1964, p. 869/64. already made, when harmonizing the laws of the Member States relating to commercial agents; Whereas additional transitional periods should be allowed for certain Member States which have to make a particular effort to adapt their regulations, especially those concerning indemnity for termination of contract between the principal and the commercial agent, to the requirements of this Directive, HAS ADOPTED THIS DIRECTIVE: CHAPTER 1 Scope Article 1 1. . The harmonization measures prescribed by this Directive shall apply to the laws, regulations and administrative provisions of the Member States governing the relations between commercial agents and their principals. 2. For the purposes of this Directive, ‘commercial agent’ shall mean a self-employed intermediary who has continuing authority to negotiate the sale or the purchase of goods on behalf of another person, hereinafter called the ‘principal’, or to negotiate and conclude such transactions on behalf of and in the name of that principal. 3. A commercial agent shall be understood within the meaning of this Directive as not inc{:lding in particular: — a person who, in his capacity as ah officer, is empowered to enter into commitments binding on a company or association, — a partner who is lawfully authorized to enter into commitments binding on his partners, — a receiver, a receiver and manager, a liquidator or a trustee in bankruptcy. Article 2 1.  This Directive shall not apply to: — commercial agents whose activities are unpaid,