If the contract is not subject to the regulations, the termination is a function of the contractual relationship established in the agency contract. Any termination clause must take into account the regulations if they apply. In the event of unlawful termination or infringement by the client, distributors are generally entitled to a loss of future income or „damage“ as a result. This damage may take the form of „compensation“ or compensation, depending on the terms of the current distribution contract (or the absence of such a contract). Do you know what should apply to you in order to maximize your interest? A business owner or a captain without a written agreement with his representative may find that his representative has essential rights under the regulations of commercial agents. An agency agreement can sometimes change and limit them. In particular, the prime contractor may, in a written agreement, pay compensation in the event of termination (which reflects the value the agent has to the activity of the awarding entity) limited to annual compensation. If the client does not opt for the payment of this compensation, compensation may be paid in the event of termination of the agency contract and there is no limit or limit to compensation. At present, no one knows how quickly the UK will start to deviate from EU legislation or what legislation introduced by the EU will be a priority for the change of the British government. In the end, there has never been a more important time to obtain specialized business advice on existing and planned agency and distribution agreements. An agent is someone who acts on behalf of the supplier. Although a representative may arrange the sale, the sales contract is concluded between the supplier and the final customer, i.e. a final consumer of the product.

A distributor is a supplier`s customer. The distributor sells the product to its own customers. If there is no written agency agreement or if there is a written agreement, but it does not contain a termination clause, the contract may be terminated by both parties with a „reasonable termination.“ If the agreement is not subject to the regulations of commercial agents and the notice has not been agreed in advance, there is talk of an „appropriate termination“. This requires independent legal advice from a business lawyer. For agreements subject to regulations, regulations establish appropriate communication. Claims can be the most important if the current agency agreement is written correctly with respect to the commercial – not with the client. In the event of a dispute with a client, you may be able to use the full scope of the law against that client to maximize your legitimate right to loss of future income. As a sales agent, you need to understand the importance of a sales agency agreement. FACT: In the absence of a properly developed distribution contract, you are potentially massively underprotected. This means that the regulations do not apply to agents who: With a distribution contract, the distributor makes a profit from the margin when selling the goods to the end customer.