This Practice Note considers agency in Ireland, types of agency, SI No 33/1994 European Communities (Commercial Agents) Regulations 1994 (Ireland) and SI No 31/1997 European Communities (Commercial Agents) Regulations 1997 (Ireland) (SI 31/1997 (IRL)), the definition of a commercial agent, the scope and application of the Commercial Agents Regulations (IRL) and the impact of SI 31/1997 (IRL) upon agency contracts and relationships to which they are applicable, excluded categories, commission, termination, compensation and restrictive covenants. Agency generally Agency is a relationship under which one person (or entity) appoints another to act under their direction and on their behalf for specified purposes. The person who employs the agent is known as the principal. In business, agents are commonly used for the introduction or conclusion of contracts between the principal and customers or other third parties. The term ‘agent’ is sometimes used loosely in business and may refer to those, eg distributors, whose activities are similar to those of agents but who are not agents in law. There must exist an intention to create the relationship