COMMERCIAL AGENCY DISPUTES

Primarily, a principal must comply with the terms of any agreement with the agent, whether written or verbal. They must act dutifully and in good faith. They must provide the agent with all relevant documentation concerning the goods or services and obtain whatever information is necessary for the agent to carry out its obligations. The principal is also expected to pay a commercial agent a ‘reasonable remuneration’ for their services.

Commercial agency disputes arise in a number of circumstances. Including the following:

• A breach of agreement.
• Misrepresentation.
• Misuse of intellectual property.
• Termination of the commercial agency agreement.
• Unpaid commission.

A principal may terminate an agency agreement at any time. However, should it terminate the agreement it is likely that it will be liable to pay the agent a termination payment under the Regulations. An agent’s right to a termination payment will ultimately depend on the circumstances of the termination but in most cases will comprise compensation or an indemnity payment, a pipeline commission, and there may also be a claim for further sums if the principal failed to give the agent the minimum notice required prior to termination.

Whether you are an agent or principal it is vitally important to ensure that the correct steps are taken when terminating an agency agreement. Where the Regulations apply the principal must give the agent the requisite notice prior to termination. If you don’t provide the correct notice period the agent may be able to claim damages for breach of contract.

At Birch Law we have considerable experience advising both principals and agents of their respective rights and obligations when it comes to terminating the agency agreement. We have particular experience acting for agents and principals when disputes arise as to the agent’s entitlement to a termination payment pursuant to the Regulations.

At Birch Law we have considerable experience acting for both principals and agents in respect of all aspects of The Commercial Agents (Council Directive) Regulations 1993 both before and after the termination of the agency relationship. We can provide strategic advice and assistance to principals who want to terminate their relationship with agents. We can also advise agents when the relationship has been terminated. If you would like to discuss a commercial agency dispute with us please contact us today on 0161 669 4621 or by email at sbirchall@birchlaw.co.uk.