Q&As

Can a principal assign an agency agreement under the Commercial Agents Regulations/Common Law Agency or would that assignment constitute a termination?

read titleRead full title
Published on LexisPSL on 30/01/2020

The following Commercial Q&A provides comprehensive and up to date legal information covering:

  • Can a principal assign an agency agreement under the Commercial Agents Regulations/Common Law Agency or would that assignment constitute a termination?
  • Is the contract capable of assignment?

The Commercial Agents (Council Directive) Regulations 1993 (the Commercial Agents Regulations), SI 1993/3053 do not contain a specific provision regulating assignment by the principal.

Consider the provisions of the agreement and whether there is a prohibition on assignment. This could be an actual term in the written contract or implied because of the nature of the relationship between the parties and how the agency is/has been conducted. See Practice Note: Contract interpretation—terms implied by fact.

Is the contract capable of assignment?

An assignment is ‘an immediate transfer of an existing proprietary right, vested or contingent from one party to another’.

Assignments can be effected either:

  1. by consent—either by way of gift or for consideration, or

  2. by operation of law—when they can occur during life or on death

An assignment by operation of law will t

Related documents:

Popular documents