‘rot ‘The Commercial Agents (Council Directive) Regulations 1993 Nob Steep Aexnsly Conacte yng Home About Us Browse Legislation sw Legislation Changes To Legislation Search Legisation te Yea: Number “ype [AN Logistaton (excuting dat) =] Searen ‘Advanced Search The Commercial Agents (Council Directive) Regulations 1993 4903 No,2053 Whole atrument ‘able ofContents Content Mora Resources @ Previous Next PainView Print Options ‘Statues hiss the gna version asitwas orignly de), Tso ofits cure only avalabe ins aginalform STATUTORY INSTRUMENTS 1993 No. 3053, COMMERCIAL AGENTS: The Commercial Agents (Council Directive) Regulations 1993, Move 17h December 1999 Lois botre Pariamant | December 1099 coming ns Force FetJonuary 1904 ‘The Secor of Ste beng & Miniter design 1) for Be purposes of seeson 22) fhe European Communises Ac 1972(2)ntlaon to measures a otling Repulatons 090 tlaons ‘ation, commendement and appeable fw 41-11) These Reguaons maybe ced as he Cancer Agent (Cound Decle) Regulations 1989 an shall on ina force an a January 1894, (2) Those Reguatons govern Be flatons batwean conmetil spon nd a ripe and subject lo paragraph (3) apply lason tthe aces of commercial egentsin Great Sri (2) Requlstons 3 to 2 da notaopy where the have oproed natthe apencyconract ism be governed by Interpretation application and extent 211) hose Repuatins— ‘commercial agant moans a sottarployed intarmodiary who has contruing ater © nego fe sale purchas of goods on Soha of ancthrporson (te princparof © negassie and conclu se sle or purchase of goods an wena af and in the name fal rnc albu shall be undersoad 9 rat Ineuging i patil (0) person who, inns eapaciy as an fice’ ofa compeny of asset, 1s empowered io ener Ito commimnens binding on at compeny of (a parerwn is ty aunonsed tener iio conmmens binding on his pares (i) aporson whe acs as an insolvency pracitaner (as mat exresion Is dete in socton 388 othe MsoNency. 1986,3) or he oquvatntin any (2) Tote Regulations do nappy o— (a) conmetia ages whose ete are unos (2) commercial agers when hey ape on comma exchangesorin he cmos ae (©) Se Crown Agents fr Overseas Governments an Admaions a8 tl up under he Crown Aganis Act 1979), is ubsraris (9) Te provisions othe Schedule those Regulations have ofc! rhe secandany, (4) Mase Regulation shal not ppl tote parse feed in paragraph (2) above hip twa legislation gov iduksi99/9059%made 5‘rot ‘The Commercial Agents (Council Directive) Regulations 1993 (5) The Regulaions do nooxtend's Northern ela paar RIGHTS AND OBLIGATIONS utes ofa commercial agente his pint! 3-11) proring hie aceite» conical agent mostlok torino intrest otha principal and act vy ann 900d th (2) n pari commercial agent must (@)__ make pope tons negotts an,whare appropts, conclude he Wansactons nes nsucte oko cr ot (©) communicate this panipal athe necessary infomaton avalble ohm: (6) compiywi reasonable istuctors sven by is principal utes of pencpat his commerelal agent 4-1) nhirolatons wit ns eonmaria agents prepa mus ac sly nin god at, (2) paral, princi mst (a) provide nis commercial agentwith he necessary docuentaton relating lo the goods concerned (©) cbtan is commercial agent intra naceatay for he performance ofthe agency contac an in parculsr nol his commercial agent within 3 Teatonable pened once he antcpas ht the volume of commercial tenascions wil be sgnteany lower hen at wich he commer agent could rnomaty have expos (2) paincpa hal, in addin, lori commercial agen winin a reasonable pari ate aceepancs or risa ot and of anynon-execon by ho commer transaezon which re commercial agonthasprocred him Preibition on derogation fom reguiations 3 and 4 and consequence of breach 5-11) The parses may not droge Fomregulatone 3 and above. (2) Te law applicable tote conv shal govern he contoquorce of braach afte rights and obligation under regulaiont 3 and 4 above Paar | REMUNERATION Form and amount of remuneration abaance of agreement {64{1) ne absence of any apreoment aso remunsrasonbetwosn the pares, commercial agntshallbe eres os ramunaraton thet connor agents apoinsd (2) Ti regulaon ew (3) tea conmarcal gent natromuneraie(ahol on part by commission regulations 71 12 below sa al pay Entitlement to commission on transactions concluded during agency conta -{1)A commarclagentsnall be ented io commision on conmarcal vaneachons concluded during te palod cove byte agency contract (a) where he tenascton nae bean concldec as a resutot is acon or (©) where the wansectonsconludad with ate pry wom he ha prevously acqureé a8 2 customer or ansectons ofthe sams kin (2)A commercial agen shalals bene 9 commission on tansactons concluded dung to pared covered by he agency convact where he hasan excuse rigntio @ specif geographical area orte a spi grou of customers and where the tansacion has been else into wih acusower belonging thal rea group. Enitiementtocommisson on transactions conclude after agency contract has trminateg (a) ransaeson it manly atrbuabe fo his for rng he period coveres by tne ageney contact ar ihe ranscton was entered na win a reasonsble (©) in acordance wih he conditions nanEoned in regulation 7 above te order othe 1d pay reached te aincpal ore comercial agentbota agency Apportionment of commission between new and previous commercial agents 9-1) commercial agen hall not be ented othe commission referred oi regulon above tha commissions payable, by ete of equation # above 10 he (2) Th prinipal sal be lble or any sum de under paragraph (1) above oe parson ale ot in accordance wih that paragraph and any sam which te ote enya agent ceceivas to which hela not end ale funded the princi “Wen commission de and date for payment 10-(1) Commision sal pacoms dues 8000 aan othe extent tone othe allowing creumstans ous (@) me pincpathas exacted he wansecon.or (©) me pinctpat should accowing whi 19r2ementwih the thé pay, have executed he wansacton or (6) mets pany hes exouted the wansectn. {2} Commission sna bocams ue athe ost when te th party has execuod nis part ofne rensactn o shoud have dons softs principal had exerted his part the ransacton, she sro nave (8) To commision shal bs paid not ner han on he as day ofthe month following the qararin wich itbecams 6s, an, br the purposes of hose Regulation, unless third month hereataro he begining afte bur mont, whiever be sooner hp ww legislation gov iduksi993/8059%made 28‘rot ‘The Commercial Agents (Council Directive) Regulations 1993 (e)Ary areament io deragata tom paragraphs (2) and (3) above lathe detirantaiheconmercal agent shalbe ved Extinction of ight to commission 11-11) The ight commision canbe exinguonad ery ifandia Be axartthat— (a) tiastantehea nat ne contact between the Bid party and he prnipalwillrotbe exacted: ane oe lactis du ee eason for wich he pinpais nate lara (2)42y commission whic the conmetlal agentnas shady reeled shale ttunded ithe right iis exingushes 3) ay agreamant i deragats Yom paragraph (1) sbove ts he debimanto the commercial agantshellbe vo. Perot supply of nfrmation as o commission due and right of nspection of principal books 12-11) Te penpals upply a conmerial agent wit a statment ofa commission dvs, ot ter han bela ay of eran folowing fe quai in whi he orimision has become due, ana such satsment shall stout he main corsorant sean calling he amount of commission. {2)A commorial agent shall be enfod i éomans hath be proved wih al Infomation (and in paiclaran exact rom #e Books) which is valet his pacipal (3)Ary agreement aeragte tom paragraph (1) and (2) above shale voi (@) Noting in ti reglaon shall ove ot oil he ect of of praventeliance upon, any anaebrantot ule of which recognise he rgnt ofan agente inspect he books ofa prncpal PARTIV CONCLUSION AND TERMINATION OF THE AGENCY CONTRACT Right signa wit statement of terms of agency contract 43-{1) The commercial agent and pina shal each be ent fo receive fom fe oer, on request, a signe! wan document sting ou fhe fms ofthe agency convactincusing any ws aubsequerly agreed (2)Ary purported waver of Pe rightrefeed ton paragraph (1 above shall be vid Conversion of agency contract ater expiry of fired period contac oran nce perc. Mrimum periods of matie for termination ot agency contract 15-11) Where an agency contracts conelied fan inden pono other pary may trina thy no, (2) he pees ofnoce shall be— (a) t mont forthe fstyse ofthe conraet (©) 2 month forthe second year commence (©) A rrentsor te tir yar conmanses arf th subsequent years (2) tho parts eae on anger poids than ote laid down in paragraph (2) above, te paid ante to be abearvad byte princi must nt be era an alta be observed bye commercial agent 2) Unlssoterwse agreed byte pares, e end af he perodotnotce mustclned win be and of calendar month Sevinge wih regard immesdate termination 16, These Regulatonesallnatafect ine aplcaion any enscentorie ot hw which provises forthe smmediteerinaton afte ageney sonra (@) because ofthe faire afone sary fo cary ott allor partis ablgntons under tat onc 0 (©) whore excoplonal excunstanas arse Enotiement of commercial agent indemnity or empensation on termination of ageney contract 17-11) Tis regulation has eft He purpose of ensuing hat the commercial agen, afr lrminaon of he agency contac indennied in accordance with paragraphs (3) (5) below or ompensaa for damage in accorance wih paragraphs (6) an (7) Bel. 2) Excopt where he agency contact otherwise provides, he conmarcalegentshall be entledo becom zenssteraner nan idamaiid 3) Subject paragraph (6) nel regulation 18 belo, he coma agen shal een an idem and oe exethat— (a) hanes brought tne pnelps new cuslomars or has gna Ineeased the volume of busines wt exsng customers andthe principal coninue o dere (©) 2 paymont of is icomntyIsecutabe naving rogers al he crcumstancs and in preular, he commission ost by the commorial agent on the (6) Te amount ot irdarniy shall not excend a ge pte oad for one Yor cals tor the commer agus areas san remunerofon ar (6) he rartotanindemly 58 mentoned above sellnol prevent commercial itor seeking damages, (@) Subject paragraph (2) and egulaton 18 below, he commercial agent sallbe ented a compensation fo the damage suf ssa resutlot te teminaton otis relations wih his pinepa 1) For the purpose ofthese Requisters such damage stall be doorsd te occur partulaty when te ferminaton takes plac in othr or Bot of the felowing (@) deprive te commercial aget ofthe commision which rope prance ofthe agency contact would have procird or him wilt providing his pencpal hp ww legislation gov iduksi993/8059%made a5‘rot ‘The Commercial Agents (Council Directive) Regulations 1993 (©) have notenabod he commercial agento amortize the costs and oxponsos tate ha incre in he perormance ofthe agency contacton he adie of (@ Enterentta te indemilyo* compensa fo samage ne provided for under paragraphs (210 (7) above shall ako arte where he agony contact i trated ata 3) Te comarca agent sallose Ns entero me ndemnlyor compensation for damage In the Insances proved fr n paragraphs (2) to () above twin one ar fewing ermnaton ofhis agency contacts has not nosed ns pinpal ae ilons pursuing his entoment ‘rounds or exchsing payment of indemnity er compensation unde eguaion 17 18, The compensation refered iin regulon 17 above shllnotbe payables commercial agonwhere— (a) he principal has tominted the agony contac because of denuk atrbable fo fe commercial agent which woul sty inmodinsferminaton of he (©) e conmetiaagerthashielieminaad te agency contac unlst such eminton ie uted — 6) by creunatances tribute to he rnp or (©) me commer agont wih te agreementothis pirclpal assigns is ahs ans dues under the agoncy contacts anohor person Prohibition on derogation fom regulations 17 and 18 19, The paris may not orogte fom rgulabon 17 and "8 othe dokimentot ne commercial agenthelore tne agony onal xo, 120-11} restant fends cause shall eval only ard he eto hak (a) tisconelases in wba: ana (©) relatos othe aoographical area orth group of customers andthe geographical ara enue oho commercial agont and oS kn of gods covered by (2)Arectaintateace clause salb valid fo notmore than we years ale rmination othe agency contac (9) Noting in he regulation sal act ay enactment or ue of kaw wich imposes other restcions onthe vally or enforeabilly of etait of rade clauses or which nabs our reduce he obgations on me parsesresutig Yom such dauses. PART MISCELLANEOUS AND SUPPLEMENTAL Disclosure of infrmation Service of notice ste 22-1) Any noe, statment roe documento be given a supplies lo commercial agentor abe given or upped cpalunder hese Regulasons may be 20 (2) by dtvoring thi: (©) byleaing ath proper aaéossacresod him by name (©) _bysenaing toy ses him adrosses ether hisrogisared addoss ore adores of his reslre orprncpal ofc: {2)Aay such notoesatamentor doouratmey— (2) inthe caso ofa body corporat be given or sored on ne sertary or dorkothatboey (©) inthe caso ofa parersip.be ston to or saved on ay panna or on any parson having he cana or management of parersip busines ‘ansiona provisions 23-1) Nowitetraig any provion in an agency contract made bloe ‘sl Janay 1996, these Regulatons sll apply tal contact arta date ana, aezorinly (2) Noting in those Repultions shall afeclihe rights and ilies of commercial ager a pncpal which have accued bear 1tanuary 1996 Sratitydo Patiamentay Under-Secretary of Sse Deparmentot rade anginausty ‘ThDecemoer 1999 ‘THE SCHEDULE Regutaton 235 (a) the tusnes ofthe pci ste sna ors Se case maybe purchase, of wood of perl tind are (©) te goods concomad ate such ta hp ww legislation gov iduksi993/8059%made 48‘rot ‘The Commercial Agents (Council Directive) Regulations 1993 ‘ransctonsn those goods wih oer custamers in the sme geographical ares or among te sme group ofcvsomers, and that acorn tn he commercial interests of he pingpal in eeveloping Be marist nose goods ib appoint a reprosenttve to such customers WI € Waw toe represeiatve devotng afer, silane expencture om his own resouceste mater 3, Tho follwing are iicaons hat an arangoment fat within paragraph 2 above and he absce of ay of hem san nication the oonary— (1 me psncipatis me manutacure,imporar or dsiouer ofthe goods; (goods are specially Hones wth he prnpalinihe marstn gestion mherthan, ort gree estantnan wih any othe person (©) me-agertdovoessubsantaly th whol this isto reprseniasve actives (wether for ane principal orf s numberof pincpals whose insress ae not conficing (8) the goods are not nora valsblein he markelinqueon her han by rans othe agent (2) the amangomertis described as one ofcommercil apo. (3) promatons matali supped svecto potential cuss (©) pesons ae granted agendas witout Jaren xing agents ipa reso nolan partulergoup (2 exooer normaly eee he goods for hemseles and mel place erodes Brough he agent 5. The aztvises af he lowing clegeres of person are presumed, unless he conta i eslabshed nol fl wit pareraph 2 above oer ctlogue agent fo consumer goes. Consumer creitagens EXPLANATORY NOTE. (sNews ie notpartatne Regulators) ‘Theve Regulating implement Coun Orecive BESYIEEC on he co-orinain of he laws of member Saas elaing fo sel-employed coneara agents (OU No, L382, 31 DDecemeer 1986.17). The aracve swine scope of ze Agreementon fo Europea Economic Ava by vite of paragraph 30 Annex Vito thal agreement The Raguatensseouthe rights and obligations as betyon commercial ages an he prinalseguatons 3s 8) and deal win remaneraton oguatons 0 12) and the conclusion ans eminaton oft agency contact regulon 1 6 18).Thy contin provision elntng fo te insornty or compensation payeble om commercal agen ontarmination of his agency convacl (ogulatora 17a 18) and elo tthe vay ores a ade lusos(ogulon 2). ‘for Division of ie Deparmentet Tade and Ineusty. Room 325, 10-18 Vewra Steet London, VIM ONN, o sussesna7. @ 9720.68. @ 9086.45 o 9796.48 ‘Aourtnts alae use Open Govern Lieree 0 except te dare salad hp ww legislation gov iduksi993/8059%made 515