An agent is someone who acts on behalf of the provider. Although an agent can arrange the sale, the sales contract between the supplier and the end customer, i.e. a final consumer of the product, is concluded. A distributor is the customer of a supplier. The distributor sells the product to its own customers. It should be noted that in 1993, the Commercial Agents Regulations created certain duties and rights for those defined by the Regulations as commercial agents in their respective EU countries. If it is intended that the parties do not have a relationship covered by these rules, this document should not be used. Claims for compensation can be the most important if the current agency contract is formulated correctly with regard to the commercial agent and not the client. In the event of a dispute with a client, you can use the entire law against that client to maximize your legitimate right to your loss of future income. Indemnification or indemnification under Regulation 17 – Indemnification is the fallback position in UK law and the agent is entitled to compensation, unless there is a written contract which expressly states that the agent is entitled to compensation instead. The legal provisions relating to payments are complex and cannot be the subject of a contractual agreement, so legal advice should be obtained both at the time of the design of the contract and at the time of the calculation or agreement of these payments. However, too much control can accidentally create a working relationship with the agent – seek advice if you want to impose greater restrictions. Agents often want to act for competitors as well.
If you have the power to negotiate, you will usually want to prohibit it in your agreement with the agent. Other agencies and competition – principals sometimes think that an agent who takes over another agency, especially when it comes to competing products, automatically constitutes a fundamental offence. However, the case of Rossetti Marketing Limited against Diamond Sofa Company Limited  had to be heard before the Court of Appeal in order for the principal to prove that such conduct constituted an offence. Each case concerns its own facts, and it is often unwise for the principal to rely only on the agent`s duty to act responsibly and in good faith in accordance with Regulation 3. Ideally, at the beginning of the agency, the officer and principal should discuss the agent`s other agencies and record them in the agreement. From the agent`s perspective, they might have to take over a number of free agencies to get a decent income. Conversely, from the point of view of the client, they will want to have some control over the time spent by the agent on his business. In practice, a balance is often reached by providing that the agent may take over other agencies, but must obtain the agreement of the payer in advance (this consent must not be inappropriately refused) and that the agreement provides that the agent will not take over an agency for goods directly in competition with those of the payer. This may require further details and discussions depending on the nature of the trade.
As a sales agent, you should understand the importance of a sales agency contract. In the absence of a properly developed commercial agent contract, you are potentially severely underprotected. You need to have a clear understanding of what is expected of you. .