Commercial Agency Agreement

An agreement appointing a self-employed commercial agent to negotiate (and, if you choose, conclude) sales of your goods in return for commission. Most such agents in Great Britain are protected by the Commercial Agents (Council Directive) Regulations 1993, which give rights that cannot be removed by contract – minimum notice, commission information and a payment when the agency ends. The Government confirmed in February 2025 that the Regulations will be kept. This template builds those rules in.

• Appointing a self-employed sales representative or agency to win orders for your products
• Expanding into a new region or customer sector without employing sales staff
• Formalising an existing informal agency arrangement – the Regulations may already apply to it

• Check the guidance at clause 1 on whether the Regulations apply
• Choose whether the agent may only negotiate or may also conclude contracts (clause 2) and whether the appointment is exclusive
• Set commission rates and payment rules in Schedule 2
• Choose Option A (indemnity) or Option B (compensation) in clause 14 – this is the most important commercial decision in the agreement
• Delete unused options and all guidance notes, then sign