Terminating Agencies


Whether your Agent has a well drafted agreement or not, it is essential that a principal takes good legal advice before unilaterally terminating an agency agreement.

Once notice of termination has been served, it cannot be retracted without the agreement of the agent.

The service of notice of termination will give rise to either a commission or indemnity payment. A principal cannot avoid this completely, a principal can only limit or reduce its exposure.

It should also be noted that in certain circumstances, an Agent will be entitled to a payment if the Agent itself terminates.

Such situations can occur at retirement through either age or ill health or even death. An agent can also seek a compensation or indemnity payment if an Agent terminates due to a principal’s breach of contract.

If you have an under performing Agent or you have simply outgrown your agents and now wish to take your sales in-house then you should consult with Myerson before taking these steps.

We can help you to potentially re-negotiate your agency contract or work with you to put in place arrangements that may limit a future compensation or indemnity payment should you chose to retire your agency work force in the near future.

How We Can Help

A member of our specialist team will be happy to help.

To discuss Terminating Agencies issues, please either use the contact form on the right, email us at lawyers@myerson.co.uk or call us today on +44(0)161 941 4000 to speak to a member of our team.

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