The legal relationship between principal and agent is governed by the EC Commercial Agents Regulations. This legislation came into effect in 1993 and cannot be ignored. Sales agents have a set of inalienable rights under the regulations that are akin in some ways to employment rights. They protect the agent against unfair treatment, especially unfair termination, and they generally help clarify the relationship. They also provide a professional and secure environment for principals and agents to work together.

As a principal, you are strongly advised to put a formal agency agreement in place between you and your sales agents. Without an agreement the EC regulations will apply in their raw form, and these are designed to protect the sales agent, not the principal. Besides, it is best practice. Most sales agents will expect an agency agreement, and some will refuse to work without one. A good agreement will lay forth the terms of engagement so there are no misunderstandings. A poorly drafted agreement will either leave you under-protected, or may be too aggressive and undermine an agent’s security, and therefore commitment, and ultimately performance. It is counter-productive to be too one-sided. As the principal you have the opportunity to ensure that this agreement protects your own interests in the key areas, whilst remaining reasonable to both parties.

There are a small number of lawyers in the UK that specialise in agency law. AgentBase has been associated with many of the most prominent lawyers for many years, and many contribute legal articles to our website and monthly magazine.

Having a bespoke agency agreement drawn up for you by a specialist agency lawyer is of course the best option. It is however rather expensive. So in order to provide a more cost-effective solution we have teamed up with several leading specialist lawyers to develop our Legal Packs. They all contain a template agency agreement plus lots of other useful information and resources. They will suit the vast majority of situations and will save you around 80% compared with going to a lawyer.



  • Legal Pack for UK companies contracting with UK sales agents for the sale of Goods
  • Legal Pack for UK companies contracting with EU sales agents for the sale of Goods
  • Legal Pack for UK companies contracting with UK sales agents for the sale of Services

The Solution – The AgentBase ‘Legal Pack’

Our Legal Pack will:

  • Provide a template agency agreement from an expert lawyer
  • Save you 80% on going to an expert lawyer
  • Protect your business
  • Help you understand commercial agency law
  • Enable you to take control
  • Limit your liability
  • Give you access to free legal assistance from an expert lawyer

Pack Contents

A Model Agency Agreement
This is a templated agency agreement. It represents YOUR best interests. It is up-to-date and ready to go – just top and tail it with your details and those of the agent. Or you can tailor it to your specific requirements using the Guidance Notes (see next point).

Guidance Notes
Written in plain English, to explain the meaning and effect of key clauses in the sales agent agreement, to guide you in fine tuning your agreement with agents.

UK Agency Law Detailed Briefing
This summarises the key legal and commercial considerations when appointing a sales or marketing agent, including the application of the Commercial Agents Regulations 1993 as amended (in particular in relation to indemnity or compensation upon termination) and UK and EU competition law.

UK Agency Law Q&A
Written in plain English, in an easily digestible Question and Answer (Q&A) format (these are often also known as FAQ’s). This is invaluable.

Full and Summary Details of EC Regulations
The Commercial Agents (European Council Directive) Regulations 1993 – the original governing law on all agency relationships throughout the EC.

A Direct Introduction to the Lawyer
The Lawyer with whom we developed the pack can assist you to put in place your tailor-made agency agreement by, for instance:- checking the legality of any minor amendments that you have made, answering any specific questions that you may have, and filling in any gaps in your understanding of the law. (Limited to 15 minutes).

Relevant articles from our magazine relating to key contracting issues.





Call us now to discuss your requirements, and for a full explanation of our services. One of our experienced consultants will be happy to help:
01926 864200