If you’re based in the UK, sell goods and have a self-employed sales force, you’re probably already aware that commercial agents are particularly well protected under the Commercial Agents Regulations 1993.
Which makes parting company with them a potentially expensive business for you, the principal.
The Regulations oblige the agent to perform his or her responsibilities ‘dutifully and in good faith’. However, the Regulations are far more prescriptive towards the principal’s obligations. This is why you should take legal advice before you take on an agent.
Take control of your commercial agents
Difficulties that can arise from terminating a contract are the reason we strongly recommend having a professionally drafted agreement in place. It simply gives you more control, essential when you consider the size of some lump sum payments at the termination of contracts. Our aim is to avoid disputes, but we have acted successfully for both principals and agents in the past.
In simple terms…
‘Agent’, ‘principal’, ‘compensation’, ‘indemnity’, if you’re having trouble getting to grips with the legal terminology used, please get in touch and we’ll happily explain, in plain English.