In order to qualify as a commercial agent, you must:

  • be self-employed;
  • have continuing authority to act on behalf of the other party; and
  • have authority to negotiate the sale and purchase of goods or negotiate and conclude such transactions for the principal.

Commercial agents are usually paid a commission on sales achieved, are not a party to the sales contract and are not a distributor.  It is important to determine if you are a “commercial agent” because if you are, you will benefit from the significant protection of The Commercial Agents (Council Directive) Regulations 1994 and 1997, with regard to a principal’s conduct and behaviour towards you and protection from being dismissed without due compensation.