Certain provisions in an agency agreement, such as an ability by the principal to reduce the territory or market covered by an agent, arguably have the effect of eroding the value of the agency. This article considers the recent case of Vick v Vogle-Gapes [2006] EWHC 1579 (QB) and the extent to which such behaviour by the principal is constrained by the Commercial Agents (Council Directive) Regulations 1993 (“the Regulations”), with particular regard to the mandatory compensation provisions and the obligation on the principal to act in good faith. The case shows an inclination in the English courts to construe the Regulations and the concept of good faith in accordance with a common law analysis of repudiatory breach.
Business Law Review