Sales agency law

Blake Morgan is one of the top law firms in the UK to have a proven track record of advising on all aspects of commercial agency law and the claims that arise in this area. We’ve acted in a series of leading cases in this field, and taken scores of disputes to successful negotiated conclusions.

Main areas of practice

Our Agency team advises both sales agents and principals at all stages. We’re experienced in advising practically on options for firms wanting to grow their sales team - which include using an employed sales team, using a distributor or using commercial agents - and in negotiating contracts to fit your commercial aims. We provide a full legal service including:

  • Putting an agency contract in place, and negotiating contract variations when circumstances change
  • Representing clients involved in disputes under The Commercial Agents (Council Directive) Regulations 1993

Clients

Blake Morgan’s Agency Team has specialised in this field for many years, and our clients range from multinational corporations and household-name firms to many
self-employed agents and small businesses. To all clients we offer a friendly, practical and cost-effective approach.

Significant experience

We have acted in some of the leading cases in the specialist field of commercial agency law, examples include:

  • Lonsdale v Howard & Hallam - case decided the law on how agents’ claims for compensation following termination of an agency should be determined. We took case to the House of Lords and established how a compensation claim should be quantified by looking at the value of the agency business which has been lost, considering what a potential third-party purchase would pay to take over that agency business. We now work with specialist accountants to advise on valuation of compensation claims.
    >>full case report
  • Crocs Europe BV v Anderson & Albrecht - we successfully acted for the claimant in this key Court of Appeal case which turned on whether and when an agent’s allegedly poor conduct was serious enough to justify a principal in immediately terminating the agency. This was critical because if termination was justified then the Principal would have avoided liability for compensation under Regulation 17
    >>full case report

Related expertise

Main contacts

Related Knowledge & Resources

The Consumer Rights Act 2015 – all change for consumer contracts for goods, digital content, services and unfair terms

News

The Consumer Rights Act 2015 is the most important piece of consumer law since the Unfair Contract Terms Act 1977. It comes into force on 1 October 2015.

If an agent disparages their principal the principal can terminate the agency contract, can’t they?

The short answer is that the principal probably can terminate, but care needs to be taken as this is not an automatic right.

Commercial agents and software – goods rather than services?

Since the introduction of the Regulations, there has been considerable uncertainty as to whether transactions involving computer software can be categorised as "sale of goods" for the purposes of the Regulations. The position has now been clarified.

Brexit – how might sales agents or their principals be affected?

Sales agents and principals are looking over their shoulders as Brexit approaches.

When might compensation be better for a principal than indemnity?

Under the Commercial Agents Regulations, an agent will generally be entitled to compensation or an indemnity payment on the termination of their agency contract. Unless the agency contract specifies an indemnity payment

Anderson and Albrecht

We have been acting for two UK sales agents in a dispute with Crocs Europe BV.