Termination of agency – calculating the compensation

Challenges valuing termination of agency

Termination of Agency

Valuation of Commercial Agencies for Regulation 17

In this blog I explore the challenges when valuing the termination of agency for compensation using a recent reported case to illustrates these difficulties. Compensation is payable by a principal to a commercial agent by Regulation 17 (2) of the Commercial Agents (Council Directive) Regulations 1993 (“the Regulations”).

The Regulations define a commercial agent as a “self employed intermediary who has continuing authority to negotiate the sale or purchase of goods on behalf of their principal or to negotiate and conclude such transactions on behalf of and in the name of that principal”. 

In this blog I use the Software Incubator case, for which I wrote expert reports and provided oral evidence in court, to illustrates some of the difficulties in estimating the profitability of the agency before assessing the compensation due. Read More

Compensation for Commercial Agents – new edition

Commercial Agency Agreements: Law and Practice

I am pleased to announce that Bloomsbury Professional has just published the fifth edition of Commercial Agency Agreements: Law and Practice.  I wrote the chapter on the valuation of commercial agents compensation for this edition as well as for the earlier third and fourth editions.

The book examines the standard commercial agency agreement where an agent is self-employed and paid a commission on sales he or she generates for the principal as it is those agents that fall within the UK Regulations.

New cases since the last edition four years ago

As expected, the fifth edition has been updated to include several new cases since the previous edition over four years ago. 

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