Court of Appeal
HELD: (1) It was common ground that the claimants were "self employed intermediaries" who negotiated "the sale of goods on behalf of another person". On the judge's findings of fact they did so with TEL's authority and were accordingly commercial agents of TEL as defined in reg.2(1) of the Regulations. However, there remained the further question of whether there had to be a contract between the claimants as commercial agents, and TEL as the principal, before the substantive provisions of the Regulations applied. (2) The substantial rights and obligations laid down in the Regulations were only intended for those in a contractual relationship. The Regulations assumed the necessity for a contract. It was clear from the Regulations that to obtain the benefit of the protection of the Directive, the commercial agent must have been entitled to remuneration for his services from the principal. For that purpose there must have been a direct legal, contractual or quasi contractual relationship between the principal and the commercial agent. A sub-agent in whose case such a relationship was lacking could not qualify for protection merely because he was self employed and had authority delegated to him by the principal's agent to buy or sell goods on behalf of the principal. The Directive was concerned only with legal relationships between the principal and his agent. (3) In the present case there existed no such legal relationship between the claimants and TEL, and accordingly the claimants were not entitled to compensation under the Regulations.
 1 Lloyd’s Rep 693
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