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Lonsdale v Howard and Hallam [2007]

Facts

  • A shoe-selling agency agreement was terminated
  • The contract was silent on the election of regulation 17 remuneration options, therefore compensation was payable

Issue

  • How should compensation be payable

Decision

  • By putting a market value on the agency, as if it were to be sold (fictionally); this value is the same as the compensation figure

Reasoning

  • The French approach of calculating compensation by doubling the agent’s average yearly remuneration from the last 3 years was rejected as not reflecting the loss caused by the termination
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