ARTICLE · 30 NOVEMBER 2023

Does An Agent Acting For Competing Principals Lose Their Entitlement To Compensation?

Myerson Solicitors LLP

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The Commercial Agents (Council Directive) Regulations 1993 have provided agents with significant protection since their establishment.

United KingdomLitigation, Mediation & Arbitration

Myerson Solicitors LLP

The Commercial Agents (Council Directive) Regulations 1993 have provided agents with significant protection since their establishment. On termination of an agency agreement, principals are often required to pay significant termination payments by way of compensation or indemnity.

When advising principals, it is crucial to consider the impact of any relevant conduct by the agent which may impact these payments. Agents acting for competitors can be a notable issue.

The extent to which agents can be restricted in acting for competitors is partially determined by the agency agreement and is an important factor for principals to consider in the preparation of an agency agreement.

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