Why you need an Agency Agreement
The relationship between a company (principal) and a sales agent is governed by the Commercial Agents Regulations, introduced in 1993. These rules still apply today, including after Brexit, and can’t be ignored.
Sales agents have certain legal rights under these regulations, particularly around fair treatment and termination. The rules are designed to protect agents, but they also help create clarity and structure in the relationship. In practice, they create a more professional and secure framework for both sides.
Contracting with sales agents
If you’re working with sales agents, having a formal agreement in place is strongly recommended.
Without one, the regulations apply by default, and they tend to favour the agent rather than the company. Most experienced agents will also expect a proper agreement, and some won’t move forward without one.
A well-written agreement sets clear expectations from the start and avoids misunderstandings later. If it’s too vague, you risk being under-protected. If it’s too one-sided, it can damage trust and reduce the agent’s motivation. The goal is to strike a fair balance while still protecting your key interests.
Should you use a solicitor?
This is a specialised area. Many general solicitors don’t deal with agency law regularly, so experience matters.
There are a limited number of UK lawyers who specialise in this field. A fully bespoke agreement from a specialist is the most thorough option, but it can also be expensive.
That’s why Salesagents.uk offers a more practical alternative: a ready-made Legal Pack developed together with specialist agency lawyers. It covers the vast majority of situations and typically costs a fraction of a fully custom agreement.
The Legal Pack
Our Legal Pack is designed for UK companies working with sales agents, covering both goods and services.
What the Legal Pack includes
- Template Agency Agreement
A professionally drafted agreement designed to protect your interests. It’s ready to use, with the option to customise if needed.
- Guidance Notes
Clear explanations of key clauses, helping you understand what each section means and how to adapt it.
- UK Agency Law Briefing
An overview of the legal and commercial aspects of working with agents, including termination rules and compensation.
- Q&A Guide
Straightforward answers to common questions. Useful for getting up to speed quickly.
- Commercial Agents Regulations (full + summary)
The core legislation governing agency relationships.
- Introduction to a specialist lawyer
Includes up to 15 minutes of guidance from the lawyer who helped develop the pack, for questions or sense-checking changes.
The value
- Avoid costly mistakes
- Stay compliant with agency law
- Protect your business
- Create clarity with your agents
- Save significant legal costs compared to a bespoke agreement