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Articles

Rights to Sales Commissions

Agents should be aware that unless they have effectively agreed anything to the contrary with the principal in question, that they are entitled to receive commission in respect to all and any sales concluded during the period of the agency agreement, where either (1) the relevant transaction has been concluded as a result of their actions, or where (2 the sale has been concluded with a customer whom the agent introduced to the principal for transactions ‘of the same kind’.

Agents should also be aware that if they discover that the principal has not been paying commission as it is obligated to do, or has otherwise been varying the basis for paying commission without the agent’s agreement, that they may very well have the right (amongst other possible rights) to hold the principal to account, and to force it to belatedly pay what it ought to have paid in the first place.

Finally, agents should also be aware that, under Regulation 12(2) of the Commercial Agents Regulations, they are entitled to demand to know what sales have taken place in their territory area or with ‘their’ customers and so able to check what their commission entitlement should be.

© David Bentley, Bentley Agency Law Limited, Bentley & Co Solicitors 7 Littlemoor Road, Pudsey, Leeds, LS28 8AF
T: – 0113 236 0550 e-mail:- [email protected].

The ONLY law which we practice is the law as it relates to commercial agents.

Please note that, as far as we can, we take cases on on a “success related fee”.

Please ensure that you obtain legal advice before acting in reliance upon anything in this article, particularly since each individual’s circumstances may necessitate a unique approach, and also on account of the fact that the law may of course at any time change. Furthermore, please be very clear that the answers given in this column may not cover or otherwise refer to all possible angles, aspects, relevant information and/or points of law and so that all or any information which is given above needs in every instance to be referred for legal advice for clarification and amplification, before being relied upon.

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