COMMERCIAL LAW

AGENCY AGREEMENTS

Agency agreements can be a good way of scaling up a principal’s business. The principal might have a great product but may require the assistance of an agent (and access to the agent’s customer base) to increase sales. The principal however needs to be aware of the potential risks involved and statutory provisions imposed on a commercial agency relationship. This is why agency agreements need to be carefully drafted. At Birch Law our expert commercial solicitors can assist you when engaging with commercial agents and when you need to prepare a commercial agency agreement.

If you would like to discuss any of our services with us, feel free to contact us using the form below or give us a call at 0161 669 4621 for a free no obligation chat. We look forward to assisting you with your legal concerns.

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If you would like any further information or need advice about any dispute, please get in touch with us today. You can contact us today on 0161 669 4621 or by email on sbirchall@birchlaw.co.uk for a free no obligation chat.

A commercial agent is an intermediary that sits between its principal and the end customer. The principal is the business that is selling products or services and the agent engages with third party customers for the benefit of the principal. The agent will sell or promote the principal’s products or services, usually in exchange for commission. Such arrangements should always be recorded in writing in a formal agreement.

Agency agreements are regulated by the Commercial Agents (Council Directive) Regulations 1993 (the Regulations). The Regulations impose certain statutory rights and obligations on both principal and agent so need to be carefully considered when drafting an agency agreement to avoid legal issues in the future.

An agency agreement is a written commercial contract setting out the terms and conditions and the relationship between the principal and the agent.

When drafting an agency agreement, the following key aspects should be considered:

  • The principal will normally engage with the agent to carry out services within a specified territory or location. For instance, one agent may be instructed to provide services in the UK whilst another might be engaged for Europe.
  • Commercial agents can be instructed on an exclusive or non-exclusive basis. It is important that the agreement makes it clear which one to avoid confusion and disputes in the future.
  • Is the agency agreement to be for a defined period or on a rolling basis? The duration of the agreement should be clearly set out in any agreement.
  • In addition to duration the agreement should record how and when the parties can terminate the agreement. There are a number of important statutory provisions that need to be considered when terminating an agreement, so it is important to document the parties respective rights and obligations when it comes to termination at the outset.

At Birch Law our expert commercial solicitors can assist agents at all stages including advising in respect of new agency agreements, variations to agency terms, restrictions and retirement/ succession planning. We regularly act for agents whose agency agreements have been terminated and can help them to claim entitlements pursuant to the Commercial Agency Regulations (such as indemnity or compensation payments).

We can also advise principals on all aspects of Commercial Agency Law, such as drafting agency agreements, variations of terms, duties to the commercial agents (and vice versa), the status of sub agencies, termination of agency agreements, grounds for termination for breach, and consequences of terminating an agent. For a free no obligation chat please feel free to contact us on 0161 669 4621 or by email at sbirchall@birchlaw.co.uk.

Whichever funding route you choose, you can rest assure that our experienced solicitors will always do their utmost to keep costs as low as possible. If you would like to discuss any of our services with us, feel free to contact us using the form below or give us a call at 0161 669 4621 for a free no obligation chat.

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