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Under Regulation 13, either party may require a written document setting out the terms. In practice, the agreement should cover the scope of the agent's authority, territory, products or services covered, the duration of the appointment, commission rates and payment dates, the obligations of both parties, and the basis for termination. Including all these terms from the outset avoids disputes and the risk of statutory default rules applying unexpectedly.

Yes. The agreement can limit the agent's actual authority to particular customers, territories, product categories, or transaction values. However, if the principal's conduct leads third parties reasonably to believe the agent has broader authority, the principal may be bound by transactions outside the written scope under the doctrine of apparent authority. Clear communication to third parties about authority limits helps manage this risk.

The Bribery Act 2010 requires businesses to have adequate procedures to prevent bribery by associated persons, including commercial agents. The appointment agreement should include warranties that the agent will not engage in bribery, representations about existing anti-bribery policies, rights for the principal to audit compliance, and an immediate termination right for any confirmed breach. A standalone anti-bribery policy schedule is best practice for higher-risk territories.

The appointment can be for a fixed initial term (commonly one to three years) with automatic renewal unless notice is given, or on a rolling basis. A fixed initial term provides both parties with certainty and avoids the immediate right to terminate on notice that applies under the 1993 Regulations for indefinite appointments. Renewal mechanisms and any renegotiation rights should be explicitly drafted to prevent ambiguity.

The principal is liable to third parties for the agent's acts that fall within the agent's actual or apparent authority, including negligent acts within that scope. For fraudulent acts, liability depends on whether the fraud was committed within the course of the agency. Principals managing this risk should include indemnity obligations on the agent, require the agent to maintain professional indemnity insurance, and audit the agent's conduct periodically.

Not unless the agreement expressly permits it. Under common law, the general rule is that an agent may not delegate authority without the principal's consent (delegatus non potest delegare). Where sub-appointment is permitted, the agreement should require the agent to take responsibility for sub-agents' acts, ensure sub-agents are bound by equivalent confidentiality and compliance obligations, and require prior notification to the principal.

Under the 1993 Regulations, commission accrued before the agent's death becomes a debt owed to the agent's estate. The appointment agreement should address whether the appointment is personal (and therefore terminates on death or incapacity) or whether it can be transferred, and should confirm the procedure for calculating and paying commission earned but not yet due at the date the agency ends.

The most common disputes concern whether a transaction falls within the agent's authority, whether commission is owed on a transaction where the principal dealt directly with a customer in the agent's territory, the calculation of compensation on termination, and the scope of post-termination restraint clauses. Clear drafting of territory, commission triggers, and authority limits in the appointment agreement reduces the likelihood of these disputes arising.