Goodwill compensation — making sure you keep the goodwill
Where a UK agent or distributor is going to be entitled to goodwill compensation on termination of the relationship, on the footing that the producer (P) will retain business which the agent/distributor (A) has helped generate, P will naturally want to ensure that he will actually retain the business, and that A will not take it away by persuading customers to accept other wines in substitution for P's.
Commercial agents
Where the agent is P's 'commercial agent', he may be entitled under the UK Commercial Agents Regulations to compensation on termination of the relationship. See compensation on termination of agency.
The rationale is that if by his activities A has generated goodwill for P and/or his products, and P will continue to benefit from that goodwill after termination by making sales on which A will receive no further commission, A is entitled to be compensated. Although they perhaps should, the Regulations do not .........
The Knowledge Bank is for members only
Please do not hesitate to contact us if you have a specific query.
Site contents published subject to this disclaimer and these conditions of use