Many of our clients retain commercial agents or are themselves a commercial agent. We advise our clients on the legal consequences and strategic aspects of entering into or terminating a commercial agency agreement.
Our specialists advise both commercial agents and their principals on their contractual obligations and rights under the Commercial Agents (Council Directive) Regulations 1993. Key commercial elements such as the payment of an indemnity or compensation on the termination of the agreement, can create major disputes between agents and their principals.
We advise our clients on the following:
- Conduct and termination
- The applicability of the Regulations on cross border transactions
- Compensation, liability and its amount upon termination by the principal
- The status of the agent – if they are a “commercial agent” under the Regulations
At Winckworth Sherwood we provide strategic input surrounding termination as well as pre-emptive advice on the drafting of agency and distribution contracts. In dispute scenarios we take a commercially focused approach to help our clients achieve early resolution, and use mediation techniques where useful.
The team’s experience includes:
- acting for a principal, sales/investment limited company, defending agents’ claims for post-termination commission
- representing a principal, Belgian textile manufacturer, in its defence of a claim by its UK agent for compensation upon the termination of the agency
- advising an agent, pre-termination of the agency agreement, on the duties of the agent and the principal and how to manage the termination to maximum benefit