Agency Agreement Termination Compensation

21 Practical Law Company, “Commercial Agents Regulations: Definition of Commercial Agent and calculation of compensation” (2005) Practical law, accessed May 15, 2006. Initially, the English courts held that compensation should be limited to the equivalent of compensation for damages for breach9. However, there is no legal reason why, in the correct situations, the agent should not receive both compensation under Regulations 17 and 18 and payments made under the common law. Moore-Bick L.J. also made it clear, hopefully for all, that the one-year cap under Rule 17 (4) did not affect the calculation of compensation, which is only relevant in the case of compensation. Green Deal argued both remedies, since, although there is an infringement, statutory compensation is an alternative to common injury and there is nothing in the regulations that excludes an aggrieved representative from the application of both means. The amount to be paid for compensation is generally less than the amount to be paid; However, in some cases, compensation may be greater, especially for new agencies. In order to avoid this risk, some contractors have attempted to include clauses in their agency agreements to provide that the agent is only entitled to compensation if it is less than the amount of compensation to be paid and that the compensation is greater than the amount to be paid, the agent is only entitled to a lower compensation. Such clauses have been struck down because they are inconsistent with regulations. The regulations do not expect the client to be able to choose the most advantageous option at the time of termination. They provide that the client and the agent choose between compensation or compensation at the time of the contract. In asserting compensation, the agent is entitled to compensation for the harm he suffers by terminating his relationship with his client.

Such prejudice is considered to have occurred in particular when termination occurs in circumstances that are either the case: the High Court has considered the issue of severance pay and found that the clause as a whole is not applicable. The judge also found that the unenforceable compensation scheme could be separated from the contract, so that the agent would be entitled to compensation without changing the character of the contract. This prevented the officer from getting a gale in the form of compensation.