What law governs commercial agency in the UK?

The Commercial Agents (Council Directive) Regulations 1993 (the ‘Regulations’) are the UK’s implementation of a European directive (EC Directive 86/653). They came into force on 1 January 1994 and govern the relationship between a certain type of “commercial agent” and principal.

What is a commercial agency agreement?

Often confused with distribution agreements, agency agreements are contracts between a principal and an agent and are governed by the Commercial Agents (Council Directive) Regulations 1993 (the “Commercial Agents Regulations”).

What are Commercial Agents Regulations?

The Commercial Agents (Council Directive) Regulations 1993 (the “Regulations”) govern the relationship between an agent and their principal when goods are being sold (as opposed to services which are not captured under the scope of the Regulations).

Do the Commercial Agents Regulations apply to services?

As the Regulations apply to goods and not services, many agents will not usually have any protection, e.g. travel, insurance and estate agents.

What are two types of commercial agents?

9 most common types of business agents

Sl. No. Agent
1. Broker
2. Business agent
3. Factor
4. Forwarding agent

What kind of provisions would you expect to find in a commercial agency contract?

Pursuant to Article 297 (2) of the Commercial Code, the provisions on the following issues shall be considered as essential: the sphere, nature and procedure of mediation services provided by the agent (scope of the agent’s authorities), rights and obligations of the parties, terms and amounts of reimbursement to the …

What are the types of agency in commercial law?

There are 3 classes of agents: General agent, Special agent and Mercantile agent.

What are the 3 types of agent under agency law?

In general, there are three types of agents: universal agents, general agents, and special agents.

  • Universal Agents. Universal agents have a broad mandate to act on behalf of their clients.
  • General Agents.
  • Special Agents.

What is a commercial contract UK?

An agreement to purchase a business. An agreement to supply goods or services.

What is the most important clause in a contract?

Often placed at the end of a contract, the termination clause of the most important clause in a contract. Every contract has to come to an end, may it be after the completion of the contract or somewhere in the middle during the term of the contract because of a default committed by a party.

What is the common law of agency?

CREATION OF AGENCY. An agency is the legal relationship whereby one person, an agent, is authorized by another, a principal, to act on that person’s behalf, and is empowered to do what the principal could lawfully do in person.

What are the terms of the commercial agency regulations?

The terms of the Regulations are implied into all relevant commercial agency arrangements, whether written, oral formal or informal. In many respects, the Regulations represent a substantial change to the English law of agency, in the main providing certain protections for the agent.

What are the Commercial Agents Regulations 1993?

The Commercial Agents (Council Directive) Regulations 1993 (the ‘Regulations’) are the UK’s implementation of a European directive (EC Directive 86/653). They came into force on 1 January 1994 and govern the relationship between a certain type of “commercial agent” and principal.

What are the rights of a commercial agent?

The Regulations give commercial agents certain rights that go beyond those implied under the common law of England and Wales. These include rights to minimum periods of notice and a right to a compensation or indemnity payment on termination of the agency agreement.

What do the new agency regulations mean for the agent?

In many respects, the Regulations represent a substantial change to the English law of agency, in the main providing certain protections for the agent.