Regulation 7 of the Commercial Agents (Council Directive) Regulations 1993 provides that:
1. A commercial agent shall be entitled to commission on commercial transactions concluded during the period covered by the agency contract –
a. Where the transaction has been concluded as a result of his action; or
b. Where the transaction is concluded with a third party whom he has previously acquired as a customer for transactions of the same kind.
2. A commercial agent shall also be entitled to commission on transactions concluded during the period covered by the agency contract where he has an exclusive right to a specific geographical area or to a specific group of customers and where the transaction has been entered into with a customer belonging to that area or group’
Regulation 7 is though one of those provisions of the Regulations which it is thought can be excluded or otherwise varied by agreement between the parties, the fact of which is therefore an example of a very good reason why agents should always very carefully check any agreements which they are sent by their principal. This of course includes any draft agreements which are sent during the course of an ongoing agency (and which draft document may therefore be seeking to vary already existing terms).
Also, Regulation 7(2) gives rise to consideration as to what constitutes an agent having ‘an exclusive right to a specific geographical area or to a specific group of customers’, with reference being necessary (again) to any written agreements between the parties and/or otherwise to custom and practice.