Commercial agents
The Commercial Agents Regulations apply to all agency contracts (whether written or oral) involving self-employed commercial agents. One of the most significant benefits provided to commercial agents under the Regulations is that they will normally be entitled to compensation from their principals if the agency is terminated. As the compensation payment can potentially be very substantial, it is vital that parties are able to accurately assess when the compensation provisions are applicable.
Our team can advise agents and principals alike on issues such as whether an agency relationship is governed by the Commercial Agents Regulations, whether compensation is due to the agent upon termination of the agency, and how the amount of any compensation due under the Regulations should be calculated.
In conjunction with our Commerce & Technology Team we can also advise both agent and principal clients at the pre-contractual stage, so that a written agency contract is agreed at the start of any agency relationship to ensure that our client’s best interests are safeguarded from the outset.
Notable recent instructions relating to commercial agencies include:
- representing the UK subsidiary of an international manufacturer in relation to defending a claim for compensation under the Regulations
- advising a US based client on whether its UK based “contractor” was a “commercial agent” for the purposes of the Regulations
- advising a major international brand owner on its potential liabilities in the event that it decided to terminate its UK based agencies
- acting for a long serving commercial agent in respect of a claim for the wrongful termination of their agency.
For further information on this or any other litigation issue, please contact Stuart Evans by emailing Stuart or by calling him on 08450 990045, or speak to your usual contact in the Commercial Disputes Team.
Here is a selection of articles we have written on issues relating to commercial agents:
Commercial agents update - when does an agent cease to be an agent?
Commercial agents update - is an agent always entitled to compensation on termination?