UK: A recent case - law on agency.

The English Court of Appeal held that an jewellery trader who invoiced customers in his own name was not a commercial agent within the meaning of The Commercial Agents (Council Directive) Regulations 1993 even though his supplier dispatched the goods directly to the customers of the intermediary, insured the goods until they reached the customers and also the trader's resale price was determined by a fixed calculation against the supplier's price to the trader.

These aspects of the judgment are less remarkable than a further view expressed by the Court, that where an agent represents an undisclosed principal, he cannot be an agent within the meaning of the Regulations (and EU Directive). The Court based this view on the fact that the 1993 Regulations require an agent to have "continuing authority to negotiate the sale or purchase of goods on behalf of another person (the "principal") or to negotiate and conclude the sale or purchase of goods on behalf of and in the name of that principal".
Since an agent for an undisclosed principal in fact contracts in his own name (and not in the name of the principal), the Court held that such agents did not fall within the 1993 Regulations (by implication, even if they had continuing authority to negotiate on behalf of the principal).


Edward Miller, Agency & distribution Country Expert for UK.


The text of the judgement, together with other interesting case-law on agency and distribution contracts, can be found in the United Kingdom page of the Reports Section of the website, while the relevant legislation concerning agency and distribution agreements in UK can be found in the Legislation Section of the Website.


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