As a general rule, the commission paid to an agent is less than the margin earned by a distributor (the distributor taking a greater financial risk). The agency will probably cost the supplier less, at least on a daily basis, than a distributor. In situations where regulations do not apply (see below, but it is not always easy to decide), exiting an agency relationship, if things do not work well, may be cheaper for the supplier than that of a distributor. Where the regulations apply, they are usually reversed. An example of the existence of an agency agreement, which was the subject of legal proceedings dating back to 2006, came when a sponsor of a tennis tournament sued Venus and Serena Williams who had not participated. The sponsor claimed that his father, Richard Williams, had committed to participate in the tournament. The Williams sisters argued that their father did not have the authority to match them to such an agreement. If his father forced the sisters to play, the court had to decide whether there was a valid agency agreement between the Williams sisters and their father. If not, they were probably not bound by its agreement in accordance with Agency law. [must update] Unfortunately, “agent” and “distributor” labels are sometimes used interchangeably, creating serious confusion. Always be aware of the regulations that apply, as it is possible that a party is both agent and distributor of various products under the same agreement (. B for example, a distributor for the sale of products, but a representative with regard to software that relates to these products).
An intermediary is an intermediary who participates in the drafting of a contract between his client and the client of the client. Under English law, an agent has the right to engage him in contracts with third parties. The first question is whether the agreement can be considered solely within the meaning of British law or whether EU competition law is relevant. (Where both are applicable, EU principles have traditionally been a priority.) The answer depends on the impact of the agreement. When ordering from a seller or distributor, a manufacturer effectively contracts the sales function of his company. It can do this for a number of reasons: using the local knowledge of an agent or trader and established business links, or saving the costs of setting up a clean sales business. In general, trade agency agreements will not raise competition problems, even if the position of EU law is not yet as simple as it could be. A representative should be distinguished from a merchant – in commercial language, a trader buys shares from the supplier or customer, then resells them to his customers for a bonus, while an agent finds customers for the customer, who then sells directly to customers and pays commissions to the agent.