It is helpful to ensure that the contract can be terminated with the minimum termination period or payment in place of that notice. King v Tunnock is a decision of the Inner House of the Court of Session in Scotland, where, for the first time, the French approach to compensation has been thoroughly analysed. This case had to be thoroughly examined by the English courts in subsequent cases. However, the English courts remained skeptical of the need to follow French practice, believing that such an approach was too generous vis-à-vis the agents. The Court found that the agency agreement is covered by the regulations and that Green Deal is therefore entitled to legal compensation. The judge found, however, that the granting of statutory compensation under the regulations (which can be granted without default) does not necessarily mean that the victim of a breach must also have a general right. The judge stated that if the injury suffered by the offence had been sufficiently compensated under the regulations, an additional compensation decision should not be made if this would result in a double recovery for the applicant. That is what happened here and, as such, the judge rejected the green agreement claim. The agency contract is one of those types of contracts subject to mandatory legal provisions. In practical terms, the Law 12/1992 of 27 May on Agency Contracts applies. This law not only determines the contractual relationship between the company and the representative during the term of the contract, but also provides for the consequences of its termination. Common law damage or legal compensation? Or both? There are several legal hurdles that must be overcome when terminating an agency contract, and it is essential that you do so properly.
The following circumstances are explicitly described in the Trade Agents Regulations (Council Directive) of 1993, In the recent case of Green Deal Marketing Southern Ltd/Economy Energy Trading Ltd – Ors  EWHC 507 (Ch), the High Court provided the High Court with a valuable insight into the consequences of terminating an agency agreement under the Commercial Agents Regulations (Council Directive) 1993 (hereafter the regulations).