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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3671
Experience:  Solicitors 2 years plus PQE
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what is the compensation due due to a UK agent when a german

Customer Question

what is the compensation due due to a UK agent when a german principle decides to with draw from the UK market
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Has the UK Agent had his/her agency agreement actually terminated?
Kind regards
AJ
Customer: replied 2 years ago.

Yes got a "out of the blue" email in mid january annoucing they will not supply the UK market again and no samples for the coming Autunm season would be coming. We work 6-9 months ahead of deliveries. falling sales not an issue. No formal written contract existed, all done on a handshake and trust.

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
As a starting point you would to ensure that they confirm in writing that your agency with them is terminated.
The next point to consider is that compensation may be payable under the Commercial Agents (Council Directive) Regulations -1993 - Regulation 17.
Regulation 17(4) states that "The amount of the indemnity shall not exceed a figure equivalent to an indemnity for one year calculated from the commercial agent’s average annual remuneration over the preceding five years and if the contract goes back less than five years the indemnity shall be calculated on the average for the period in question."
Do you have financial figures for the preceding 5 years?
Kind regards
AJ
Alex J. and other Law Specialists are ready to help you
Customer: replied 2 years ago.

Yes I do have them, but you have answered my question so far. i presume this is an EU/ECC directive - can you give me the number?

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
Please see the link below to the applicable EU Directive.
http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:31986L0653
Kind regards
AJ