Agency agreements can be beneficial for companies that wish to be present in the Irish market without fully committing. When a company decides to appoint a representative, it is important to consider all possible effects of such an agreement, as this can have a significant impact on the costs of terminating a commercial agency. In our experience, if the agency lasted for a reasonable period of time, then typical compensation for the early termination of the agency will be three months to two to three years of commission, usually on the basis of the previous commission of three or five years average to pay to the agent after termination. However, there are some mandatory exceptions to the application of this right to compensation. For example, there is no compensation if the contract has been terminated due to an agent`s default or if the agent has terminated the contract unjustifiably. In a franchise relationship, the franchisee enters into contracts in its own name and in its own name, but often pays a percentage or a share of its revenue to the franchisor. This percentage or share is usually in exchange for the use of the franchisor`s name, value or products, so it differs from a commercial agency relationship. No, there is no legal obligation to have a written agency agreement, although a written agency agreement often clarifies the rights, obligations and obligations of the representative and the client, which helps to determine the contractual relationship between them. The agent and the contracting entity have the right to obtain from the other, upon request, a signed written document containing the terms of the agency contract. However, it is often in an agent`s interest not to have a written agreement. You may also have claims under Regulations 7, 8 and 15.
Regulation 7 provides that an agent receives all commissions earned during the Agency. If your client has not paid you all the commissions due to you until the termination, you are entitled under Rule 7. It depends heavily on the circumstances of your individual relationship with your agent/principle. If you are an agent, it may be advantageous for you not to have a written agreement so that you are not bound by revenue targets and that they can benefit from payment of compensation in the event of termination under Rule 17. While a written agreement clearly has advantages, it is not possible for the written agreement to be bad or drafted without understanding how the regulations work, but it cannot fulfill its mission and may not offer you the protection you hoped for. Yes – commercial agency contracts can only be established for a fixed period of time. However, the fact that a commercial agency is indicated only with a fixed term does not impede the application of the regulations, so that under the regulation, payments can be paid to the representative after the end of the fixed period.