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Agency, Reseller and Distribution Agreements

Agency Agreements, Reseller Agreements and Distribution Agreements

Agency Agreement Solicitors in London

Our agency agreement solicitors regularly assist businesses across London and farther afield with agency agreements, reseller agreements and distribution agreements. Industries in which we have particular expertise include software, information technology, fashion, pharmaceuticals and cosmetics.


Agency Agreement Solicitors

The tried and tested agency relationship can be profitable for principals and agents alike. A well-connected commercial agent can help a business expand into a new market or location with lower risk and lower overheads. Agents are not employees however, so businesses will have less control over agents. It is therefore important for an agency agreement to clearly document matters such as:

  • Will the agency be an exclusive appointment, or will the principal be entitled to appoint other agents?
  • Exactly what is the agent is authorised to do? For example, will the prices be set in stone or can the agent negotiate them?
  • Will the agent have any marketing and promotional responsibilities?
  • The agent’s entitlement to commission – what is the rate and how is commission calculated?
  • Monitoring of the agent’s performance, particularly with respect to sales targets.
  • What is the duration of the agency appointment and when can it be terminated?

Businesses should also be aware that cutting across commercial agency agreements are the Commercial Agents Regulations 1993. The Regulations are there to, among other things, protect and enhance the rights of commercial agents. Part of our role and responsibility when preparing and advising on agency agreements for your business will therefore be to ensure the impact of the Commercial Agents Regulations 1993 is clearly understood.

Reseller Agreement Solicitors

Reseller and distribution agreements can be contrasted from agency agreements, in that a reseller or distributor is buying the product from its supplier or manufacturer. Legal title in the product therefore passes to the distributor or reseller, who will then add a margin to cover the costs of resale. There are several reasons a business may decide that reseller and distribution arrangements are more appropriate than agency agreements. One such reason is that the Commercial Agents Regulations 1993 will not apply. Another reason is that, unlike the relationship between principal and agent, a supplier will generally not be liable for the acts or omissions of its reseller or distributor.

If you are looking to expand your product sales and indirect sales network via agents or distributors, you can contact us today for a confidential discussion with an expert B2B contract lawyer.