Ex listening

Ex 25

1. 
   The aim is to provide commercial agents with a level of protection and security by ensuring that they are compensated following termination of the agency contract.
   
2. 
   Under Regulation 17, there are two alternative ways of calculating a lump sum payment following, termination of an agency contract: indemnity and compensation. The circumstances under which an indemnity will be granted are outlined in 17(3), and the calculation of the indemnity is covered by 17(4). The rules for calculating the entitlement under the compensation option are vaguer. The parties can choose between the two options, but the compensation alternative will apply where there is no agreement for an indemnity. Both terms refer to the payment of a lump sum, the main difference being the circumstances under which each particular form of lump sum payment will be granted and calculated.
   

Ex 26

1. 
   If stated in the contract. (NB the text mentions that compensation is available except where the contract otherwise provides, so logically indemnification is available if it is stated in the contract.)
   
2. 
   a) The agent has to have either brought new customers or significantly increased sales with existing customers and b)the payment of an indemnity has to be fair (this will depend on the surrounding circumstances).
   
3. 
   The maximum amount of indemnity is one year's commission based on the agent's average earnings in the last five years. If the contract has run for less than five years, the indemnity will be calculated on the average for the period of the contract.
   
4. 
   Yes (17(8))
   

Ex listening
28

1. 
   The company feels it no longer needs its agents in order to sell products in southern Europe. It is getting lots of repeat orders and relatively few new customers, and no longer wants to keep paying commission on all sales to its agents.
   
2. 
   There is no maximum limit for compensation.
   

29

1. 
   No. compensation is also payable for any reasonable expenses incurred by the agents.
   
2. 
   Two years
   

30

1. 
   F (They are not in breach of contract.)
   
2. 
   T
   
3. 
   F (The agreement doesn't provide for an indemnity.)
   
4. 
   T
   
5. 
   F (It is valid for two years.)
   
6. 
   F (The clause must refer to both the geographical area and the type of goods.)
   
7. 
   T