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10 July 2009
Issue: 7377 / Categories: Case law , Law digest
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Commercial law

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Sagal (trading as Bunz UK) v Atelier Bunz GMBH [2009] EWCA Civ 700, [2009] All ER (D) 40 (Jul)

Agents with authority to contract, as opposed to authority to negotiate, were only commercial agents for the purpose of Council Directive (EEC) 86/653 (on commercial agents) if they had authority to contract, and did contract, in the name of the principal as well as on its behalf.

Whilst in English law it was possible for a principal to authorise an agent to make a contract on behalf of the principal but in the name of the agent rather than in the name of the principal, agents who contracted in that way did not come within the definition of commercial agents under the Directive.

 

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