Agency Law
LAW OF AGENCY – SALES AGENTS & BUSINESS AGENTS
AGENCY LAW AND AGENCY AGREEMENTS
Agency is commercially useful and beneficial
Agency law is an extremely important part of the legal and indeed commercial landscape. It allows businesses to keep their costs to a minimum, avoid some of the rigid and high standards expected by modern employment law and be represented in fields and areas where they do not have an established presence.
A minefield area
However, agency law is literally a legal minefield. A quick example will demonstrate this. Your average shop assistant is both an employee and an agent at the same time. He or she is an employee by carrying out the duties of their employment, which might include manning a till, generally assisting customers and replacing stock. Nevertheless, when it comes to actually selling goods and handing over goods, the employee is simultaneously an agent because he or she is technically entering into a contract with the customer on behalf of the owner of the goods (the store owner), thereby changing the legal position of the owner of the goods with respect to third parties.
Agency can be confusing in other ways too. Agent’s have different degrees of power to agree things on behalf of the owner of goods or services according to the power that is afforded to them in an agency agreement. The degree of power the agent has can subtlety vary according to the actions of the agent and principal (the owner) over time.
Our services
Clearly then, it is important that if you decide to use agents you are on top of the law and get all the advantages of this commercially beneficial relationship.
Hillingdon solicitors have years of experience in helping business clients get the most out of agency relationships. Whether you are thinking of using agents, need to draft an agency agreement or are having an existing dispute related to agency law, we are here to help make sure that your business is on top of the law.
Drafting agency agreements
It is important to make sure that an agency agreement is properly and clearly drafted in order to ensure the agent does not have excess power, to define the agent’s territory and your position on remuneration and confidential information. Agency is often used on a short term basis, so it is important that you define the circumstances in which the relationship will come to an end, otherwise you risk having to take on the agent as a full-time employee which has tax, financial and legal implications.
The European influence
The European Union if influential in agency law, and The Commercial Agency (Council Directive) Regulations 1993 are particularly important. The regulations give agents certain basic rights including the right to receive notice and compensation if the agreement is terminated in certain ways.