Q&As

How is an agency appointment to supply goods and services treated under the Commercial Agents Regulations? If the supply of goods is not secondary are the sales of the services relevant when calculating termination payments under the Commercial Agents Regulations? If the supply of goods is considered secondary, would the agent be deemed a commercial agent if two separate contracts were put in place—one for goods and one for services?

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Published on LexisPSL on 06/07/2018

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

  • How is an agency appointment to supply goods and services treated under the Commercial Agents Regulations? If the supply of goods is not secondary are the sales of the services relevant when calculating termination payments under the Commercial Agents Regulations? If the supply of goods is considered secondary, would the agent be deemed a commercial agent if two separate contracts were put in place—one for goods and one for services?

This Q&A concerns commercial agency agreements where the agent (A) is appointed by the principal (P) in relation to the supply of goods and services. It addresses two questions: (1) whether the supply of services is relevant when calculating termination payments under the Commercial Agents (Council Directive) Regulations 1993 (Commercial Agents Regulations), SI 1993/3053 where the supply of goods is not a secondary activity; and (2) where the supply of goods is secondary, whether A would be considered a commercial agent if separate agency agreements were concluded for goods and services.

Under Commercial Agents Regulations, SI 1993/3053, reg 1(2) govern ‘the relations between commercial agents and their principals’. The definition of ‘commercial agent’ in Commercial Agents Regulations, SI 1993/3053, reg 2(1) is limited to agencies relating to goods and so excludes agencies relating to services. However, the Commercial Agents Regulations, SI 1993/3053 are only disapplied in relation to persons whose ‘activities as commercial agents are to be considered secondary’. It is therefore A’s status which triggers the application of the Commercial Agents Regulations. The inevitable inference is that the Commercial Agents Regulations, once they apply, apply to the entirety of A’s relationship with P, including any ancillary functions relating to se

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