Q&As

Do the Commercial Agents (Council Directive) Regulations 1993 apply in the situation where an introducing party introduces potential leads to a business which the business follows up and coverts to sales, a commission payment is made to the introducing party on converted sales?

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Published on LexisPSL on 05/08/2016

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

  • Do the Commercial Agents (Council Directive) Regulations 1993 apply in the situation where an introducing party introduces potential leads to a business which the business follows up and coverts to sales, a commission payment is made to the introducing party on converted sales?
  • Secondary activities

The Commercial Agents Regulations (Commercial Agents (Council Directive)) Regulations 1993, SI 1993/3053 apply only to the relationship between the principal and the commercial agent. They do not apply to the agent's external authority or to relationships with third parties under transactions the agent negotiates or concludes. It is therefore necessary to establish whether a party is in fact a commercial agent. In this regard, see Practice Note: Commercial agency, specifically the section entitled Commercial agency—Definition of commercial agent.

A commercial agent is a self-employed intermediary who has continuing authority to:

  1. negotiate the sale or purchase of goods o

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