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Category: Property Law
Satisfied Customers: 21
Experience:  Moderator
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In commercial law (agency), if an agent has worked for a principal

Customer Question

In commercial law (agency), if an agent has worked for a principal for 10 months you can give 1 months notice. But can the agent claim compensation?
Submitted: 4 years ago.
Category: Property Law
Expert:  Ash replied 4 years ago.

AlexWatts2013 : Hello name name is Alex and I will help with this. Is there anything in the contract that says they can claim compensation please?
JACUSTOMER-ucatlz3x- :

No contract. Agent has opened 70 customers which is below what we wanted. Also he has a number of other agencies and is selling stock for his other principles. So I met him the other day and he proudly informed me that he had sold 40 rolls last week (around £3500 worth) to his customers. He has sold 0 rolls for us in 10 months. He sells our samples and if we are lucky we get an order from his customers.

AlexWatts2013 : Is there a termination clause and if so what does it say please?
JACUSTOMER-ucatlz3x- :

No, no termination clause. We have correspondence stating what we want, number of accounts opened, etc.

JACUSTOMER-ucatlz3x- :

We don't have a contract

AlexWatts2013 : Was it every agreed that the agent could claim compensation if terminated?
JACUSTOMER-ucatlz3x- :

No, never agreed anything. But he is an experienced agent so I am sure he will ask for compensation.

AlexWatts2013 :

Contracts can be oral as well as written. Any party relying on a contract must have agreed the terms or some by law are implied by contract. If there is no clause that states there needs to be a notice period or that compensation would become due in the event of termination then the agent will not be able to claim it. Only those terms agreed in advance can be relied upon and in this case there is no contract and as such no terms can be relied upon. Therefore if you terminate you do not need to pay compensation as it was not or has never been a contractual term.

AlexWatts2013 :

If this fully resolves your question then please take a moment before you leave and rate my service, it only takes a second and is an important part of the process. Otherwise if you need more information or help then please click reply. Alex

Expert:  Nicola-mod replied 4 years ago.

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