A commercial agent is an intermediary who negotiates the sale or purchase of goods on behalf of another party (the principal).

The Regulations set out the rights and obligations of commercial agents and principals, including the duties that each party has towards the other. They cover the payment of agents, including entitlement to commission, the duration and termination of agents’ contracts and the continuing obligations of principals after termination of a contract or agency agreement. The terms of the Regulations are implied into all commercial agency agreements, whether these are written, unwritten, formal or informal.

The Regulations were introduced in order to bring the UK into line with EU law. They apply in England, Wales and Scotland. In Northern Ireland the Commercial Agents (Council Directive) Regulations (Northern Ireland) 1993 apply.

This factsheet explains who the Regulations apply to and the obligations that they place on commercial agents and their principals.