Should we get advice from a legal expert in the UK on agency agreements or in the country where the agent is based?

Question

Should we get advice from a legal expert in the UK on agency agreements or in the country where the agent is based?

This question was asked at our recent webinar – Finding the right agent or distributor to grow your business overseas

Answer

Hello,

I´m a spanish lawyer so take it with a grain of salt.

Most jurisidictions will have the agency agreement governed by the law of the agent so it makes sense to have legal counsel there to enter the agreement and to follow the fullfilment; agents have conflicts of interest here and there and the limitations of their duties make them extremely dangerous when it comes to compliance or in general getting you in trouble.

I would always keep my local counsel near so I´m advised about best practices, keep rates reasonable and get a second opinion about courses of action.

Ideally your attorney could also get the best fit for the job.

Regards.

Answer

Personally I’d start in the UK.
Having 10 markets and you dealing with 10 lawyers overseas might be a bit complex.
Remember distributor and agency agreements should not be over complicated.
Both parties want to do business.

This is not legal advice, just my view based on experience.
Good luck
Steve

Answer

Hi Sarah

I would suggest that you consider which type of agreement is required distributor agreement or agency agreement as there is considerable legal difference between each.
Also if you are exporting to a Middle East Country, care is required before appointing either a distributor or an agent as the laws relating are not as within the UK.
My advice would be in the first instance is to have an initial discussion with a company who has experience in International trading agreements. We provide an initial exploratory discussion with potential clients on a no fee basis. However what ever your decision, take legal advice before any appointment of distributor or agent.
Kind Regards
David

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