The agreement does not provide compensation for the agent if he is terminated. In some countries – including the European Union – an agent is entitled to compensation if his agreement is denounced, and the parties should seek legal advice and consider whether they should include language to include this issue in the agreement. Within the European Union, there is a Council directive that regulates aspects of agency designation and, in the United Kingdom, this directive was transposed by the 1993 Trade Agents Regulations (Council Directive). This is available online at www.opsi.gov.uk/si/si1993/Uksi_19933053_en_2.htm. There is also a free document on our website that summarizes the main provisions of the law (Z163). 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] Many states apply the rule of the same dignity, according to which the agency agreement must be written if the subsequent agreement was necessarily written, as. For example, a contract to purchase goods worth thousands of dollars. Within the European Union, there is legislation to provide some protection to agents, in particular the right to compensation in certain circumstances when an agency is dismissed.

The same is true in other parts of the world, and in some countries it is necessary for a foreign manufacturer to designate as an agent a person or company that is a national of the country in which the Agency will operate. Manufacturers and suppliers of products often use agents acting on their behalf to promote sales, both in the manufacturer`s home country and abroad.

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