Am I a commercial agent?
- 24 June 2015
- Litigation and dispute resolution
Agency arrangements often arise informally, and we are sometimes consulted by agents and principals who are not sure whether they fall within the Commercial Agents (Council Directive) Regulations 1993 (the Regulations) or not. The question is an important one, because agents who do fall within the protection of the Regulations are entitled to compensation on the termination of their agency (or alternatively an indemnity, which is calculated differently, if they have a written agreement and this expressly provides for an indemnity rather than compensation).
The Regulations define a commercial agent as “a self-employed intermediary who has continuing authority to negotiate or negotiate and conclude the sale or purchase of goods on behalf of another”. What does this actually mean?
We recommend that agents and principals who are not sure if their arrangements fall within the Regulations take legal advice at an early stage (and ideally before termination is on the horizon) so that they can be sure of their rights and obligations, and plan appropriately for the future.
The Regulations define a commercial agent as “a self-employed intermediary who has continuing authority to negotiate or negotiate and conclude the sale or purchase of goods on behalf of another”.
Keep up to date with the latest tips, analysis and upcoming events by our legal experts, direct to your inbox.
Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.