Commercial law Essay Example | Topics and Well Written Essays - 1750 words - 2

Commercial law - Essay ExampleOnce the terms of an agency agreement have been made, it is important to draft a written contract that any of the parties involved can request, which would state the duration of the contract among other things. An agency agreement usually contains the fixed term of the contract, exists for an dubious term that is terminable and lastly a fixed term that can be extended if agreed by both parties1.In relation to Rosie and Simons case, the parties did have a written contract or agency agreement that did not state the terms of their contract in detail. The implication of this is that it might be difficult for Simon to prove that Rosie went against the terms of the contract that they had agreed upon through the written agency agreement. Additionally, Rosie is in breach of the contract they agreed upon with Simon because she did not give Simon the 10% commission that they had agreed on when he sold a piece of work for her. In order for Simon to be safe, he wou ld have made confident(predicate) that he drafted a contract that captured much detail on how he was to make money out of the contract. For this reason, Rosie could be entitled to not pay Simon.On the contrary, the Commercial Agents regulation requires that either of the parties wishing to terminate an agreement entered for an indefinite period issue adequate notice to the other party, which Rosie did not comply. The regulation requires that a person provides notice of termination depending on the period they have been in the contract. For example, if they have been in the contract for a year, they should issue a one months notice, 2 years attracts a two months notice and so on. Therefore, Simon has grounds to seek compensation for the breaching of the contract that he had entered into with Rosie based on not being issued with graceful notice. The regulation requires that a principal act dutifully to the agent and in good faith to which she did not