ABSTRACT
Termination is undoubtedly the area where the Agency Regulations have made the most substantial changes to the level of legal protection for commercial agents, by giving them the right to a lump sum payment on termination, being in the language of the Directive either 'compensation' or 'indemnity'. Termination is the event that triggers the right of commercial agents to claim compensation or indemnity. At common law, an agency relationship may be terminated by mutual consent or by the unilateral act of either party. Regulation 18(c) expressly stipulates that the commercial agent may assign the commercial agency to a third party. In relation to fixed-term contracts, the impact of the Agency Regulations is mixed since the presence of some very protective rules is weakened by the silence on the issue of unilateral termination and notice. At common law, frustration terminates the contract automatically but it is a very narrow doctrine.
