Q&As

Does the formalisation of an unwritten agency arrangement into a written agency agreement have effect to terminate the informal agency agreement for the purposes of the Commercial Agents (Council Directive) Regulations 1993, SI 1993/3053 (the Regulations)?

read titleRead full title
Published on LexisPSL on 04/05/2018

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

  • Does the formalisation of an unwritten agency arrangement into a written agency agreement have effect to terminate the informal agency agreement for the purposes of the Commercial Agents (Council Directive) Regulations 1993, SI 1993/3053 (the Regulations)?
  • Position under the Commercial Agents (Council Directive) Regulations 1993, SI 1993/3053 (the Regulations)
  • Formalising arrangement—termination, variation or continuation
  • Termination of the original unwritten agreement
  • Variation of the original unwritten agreement
  • Continuation of the original unwritten agreement in written form
  • Termination of commercial agency
  • Variation of agency
  • Further consideration

Position under the Commercial Agents (Council Directive) Regulations 1993, SI 1993/3053 (the Regulations)

We have assumed that the situation being considered is separate to that provided for in Commercial Agents (Council Directive) Regulations 1993, SI 1993/3053 (the Regulations, SI 1993/3053, reg13) which provides that the agent has the right to receive a signed written statement of the terms of the agency contract. Despite an agency relationship being unwritten, the Regulations still apply to it, and the provision of written terms is not deemed to be a variation or termination of the unwritten relationship under the Regulations.

The specific scenario in this Q&A is not provided for under the Regulations. The Regulations provide only that:

  1. an agency contract for a fixed period which continues to be performed by both parties after that period has expired shall be deemed to be converted into an agency contract for an indefinite period (the Regulations, SI 1993/3053, reg 14)

  2. an agency contract of indefinite period may only be terminated by notice by either party of specific periods (being, one month for the first year, two months for the second year and three months for the third and subsequent year) (the Regulations, SI 1993/3053, reg 15)

  3. an agency contract for a fixed period which is converted into one for an indefinite period pursuant to the Regulations, SI 1993/3053, reg 14, must count

Related documents:

Popular documents