GLOSSARY
Commercial agent definition
/kəˈmÉ™Ëʃ(É™)l/ /ˈeɪdÊ’(É™)nt/
What does Commercial agent mean?
A self-employed intermediary who has continuing authority to negotiate the sale or purchase of goods on behalf of the principal or to negotiate and conclude the sale or purchase of goods on behalf of and in the name of that principal. [Commercial Agents (Council Directive) Regulations 1993, SI 1993/3053, reg 2(1)].
A person is deemed a commercial agent by comparing the facts to the regulatory definition, and specifically, if the sale or purchase of goods was negotiated by the intermediary in its own interest rather than on behalf of the principal, the intermediary was not a commercial agent. The paradigm example of an intermediary so negotiating is that of a distributor purchasing goods from the manufacturer but reselling the goods for a profit on the mark-up. The commercial agent is also entitled to indemnity or compensation on termination of the agency contract when the commercial agent is deprived of his commission despite providing his principal with substantial benefits or had not enabled the commercial agent to amortise his costs and expenses he had incurred in the performance
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