Module two of this Dealing with Agents & Distributors course Covers regulations 17-20 of the Commercial Agents Regulations 1993 particularly as they apply to Agency Law.
Key Terms
Regulation 17: Indemnity or Compensation
Regulation 18: Grounds for Excluding Payment
In accordance with Regulation 18 of the Regulations, there are some grounds for excluding payment under the compensation or indemnity mechanism. This will arise where the relationship has been terminated due to the default of the agent.
- However, it is important to ensure that there is a contractual right to do this to avoid being in a position where the principal must rely upon establishing a breach of the duties under the Regulations, something which can be quite difficult.
The following graphic provides a number of grounds for excluding payment and a few exceptions
Regulation 19
Cannot:
Regulation 19:
Regulation 20: Restraint of Trade
Understandably, principals want to impose restrictions onto agents given the time, money and confidential information which is invested into them. However, bearing in mind the rights and remedies available to agents as set out above it will not come as a surprise that there are certain safeguards dealing with how such restrictions may be imposed on the agents under Regulation 20.
This provides that in order to be valid a restraint of trade clause must:
- Be in writing;
- Relate to goods, customers and the territory covered by the agency relationship; and
- Be for no more than a period of 2 years in length.
Choice of Law
Module Two: Knowledge Quiz
The following short quiz consists of multiple choice and true false questions which pertain to information delivered in this module. Proceed through each question by selecting the arrow at right to complete this module.