In the absence of a clear breach of the written agreement, the awarding entity may be called upon to invoke the common law principles applicable to thieves. In many cases, a distribution agency is interpreted as one of the special classes of fiduciary relations in which the agent owes specific obligations to the client. The contracting power may also invoke the obligations of a commercial agent covered by Regulation 3, in particular the obligation to look after the interests of the client and to act “in good faith and good faith,” often invoked in such circumstances. Termination provisions – all commercial agents who negotiate the sale of goods within the EU have the right to be compensated or compensated at the end of their agency, in accordance with Regulation 17 of the Trade Agents Regulations (Council Directive) of 1993 (“Regulations”). If, in the United Kingdom, the Agency`s written agreement does not indicate that the agent is entitled to compensation, the agent is entitled to compensation under Regulation 17. However, especially since the 1993 Commercial Agents Regulations (“Council Directive”), contracting powers have tended to: re-examine the logic of signing the contract with commercial agents, particularly because of the debts they face when terminating a commercial representation contract (mainly with regard to compensation or compensation). , if the contract provides for it, compensation under Regulation 17, pipeline commissions under Regulation 8 and the notice of Regulation 15). Therefore, the officer has the right to declare the commissions due and may require checking the books, or seeing a copy. In practice, disputes in this area are generally related to the suspicion that the client does not award full credit to the agent for certain sales, which is sometimes accompanied by a dispute over whether the agent is authorized to pay commissions on sales placed directly with the master rather than through the agent. If the contracting authority can prove that the agent violated a fundamental violation of the agency agreement, it ends the rights to compensation (or compensation if the contract provides for it) in accordance with Regulation 17 and the notice in accordance with Regulation 15. The Crocs case highlights several important practical issues: the levels and changes of the Commission – often, a client will want to adjust down the increase in commissions paid to an agent as soon as a product “takes off” and turnover increases significantly. On the other hand, agents are very resilient because they will see the growth of marketing directly due to their own efforts.
Often, this issue is overlooked at the beginning of an agency agreement, especially for agencies dealing with new products or brands, but also the discussion of how the parties envisage the evolution of the relationship and the attempt to reach an agreement from the outset can quite help to avoid costly quarrels afterwards. Employees – the disadvantage of employing commercial agents in place of agents is the fixed liability in terms of salary, NI, benefits and pensions that are coming to an end. The advantage may be that when the goods market is established, an salaried sales agent may cost less than paying commissions per month. The main issues that the client must consider are performance objectives and breach of contract – here too, the interests of the agent and the main interests on this issue diverge, but an initial discussion is desirable. From the client`s point of view, they will likely want to set out the circumstances in which the performance of a representative will not be satisfactory and their behaviour will be considered a breach of contract, particularly with regard to sales performance. Conversely, agents are often reluctant to sign such commitments, especially in cases where they enter a new brand or area and therefore it is difficult to estimate likely success. Whatever the solution, it is advisable to avoid a situation in which the client will have to strive at a later date to achieve objectives of c