Agency Arrangements

Agency Arrangement Legal Advice

Specialist Legal Advice on Commercial Agency Arrangements

At First Law Solicitors, we help businesses, agents and principals across the United Kingdom prepare and manage clear, enforceable Agency Agreements. An agency arrangement defines how an agent is authorised to act on behalf of a principal, setting out rights, responsibilities and commission terms. Our solicitors ensure that your agency agreements comply with UK law and protect your commercial interests, whether you are appointing an agent or acting as one.

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Agency Arrangements

Understanding Agency Arrangements

A commercial agency arrangement gives one party, the agent, authority to negotiate or conclude sales or contracts on behalf of another, the principal. It is commonly used in sales, manufacturing, and distribution sectors.

In the UK, commercial agencies are governed by the Commercial Agents (Council Directive) Regulations 1993, as amended, which provide specific protections for agents, including rights to notice and compensation upon termination.

Alongside these statutory rules, modern agency contracts must also comply with wider commercial legislation, including the Digital Markets, Competition and Consumers Act 2024 and the Data (Use and Access) Act 2025, which set standards for transparency, fairness and data handling in digital and business-to-business transactions.

At First Law Solicitors, we draft and review agency agreements that are fully compliant with these laws and compatible with the Digital Verification Services framework for secure digital execution using Qualified Electronic Signatures (QES).

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How Our Solicitors Help with Agency Contracts

Our commercial solicitors advise both principals and agents on the creation, negotiation and enforcement of agency arrangements. We take time to understand how your business operates, the scope of the agency relationship and the commercial objectives you wish to achieve.

Every contract we prepare or review complies with the Commercial Agents Regulations, the Competition Act 1998, the Data (Use and Access) Act 2025 and the Digital Markets, Competition and Consumers Act 2024.

If you are presented with a draft agreement, we identify clauses that may create unfair obligations or limit your rights. We then propose amendments to ensure balance and legal clarity. We also assist clients with the termination of agency relationships, including calculation and negotiation of compensation or indemnity entitlements under UK law.

Where digital signing and record management are required, we ensure that the agreement meets QES and DVS verification standards, that authorisations are valid and that records are securely retained in accordance with UK eIDAS regulations.

Key Legal Protections in UK Agency Agreements

Our solicitors focus on ensuring that every agency contract includes clear terms covering authority, scope, remuneration and termination. We ensure that commission arrangements, exclusivity clauses and territorial restrictions are fair, transparent and enforceable.

We advise on the application of the Commercial Agents Regulations, including the agent’s entitlement to commission and notice periods, as well as post-termination compensation or indemnity.

Where exclusivity or non-competition terms are included, we ensure they comply with the Competition Act 1998 and do not restrict trade beyond what is legally permitted.

Data protection and confidentiality clauses are drafted in accordance with UK GDPR and the Data (Use and Access) Act 2025, following the guidance of the Information Commission (formerly the ICO). This ensures that client and customer information handled by the agent is stored and processed lawfully.

Liability and indemnity clauses are drafted in compliance with the Unfair Contract Terms Act 1977, ensuring that risk is allocated fairly between the parties.

Ensuring Digital and Legal Compliance

Digital execution and compliance are now standard for commercial agency contracts in the UK. Under the Digital Markets, Competition and Consumers Act 2024 and the Digital Verification Services framework, agency agreements must maintain verifiable digital records and ensure that all authorisations and amendments are fully traceable.

Our solicitors help clients implement digital signing and storage processes that meet QES verification standards, ensuring the validity and authenticity of all documents under the Data (Use and Access) Act 2025.

Why Choose First Law Solicitors

At First Law Solicitors, we understand that agency relationships are built on trust and clarity. Each agreement we prepare reflects your commercial reality while offering the protection you need to operate confidently within UK law.

We draft in plain English so both agent and principal understand their rights and obligations. Every contract is structured to prevent disputes and to meet the highest legal and digital compliance standards.

We also provide continuing support once agreements are signed, assisting clients with renewals, variations and, where necessary, termination or compensation claims.

Contact Our Agency Agreement Solicitors

If you are appointing or acting as an agent and need professional advice on your rights and obligations, contact First Law Solicitors today. Our commercial solicitors provide clear and practical guidance on agency agreements throughout the United Kingdom.

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