Facts
- Vogle-Gapes (principal) reduced the territorial scope of Vick’s (agent) activities
- Vick sued for Vogle-Gape’s breach of his duty of good faith
Issue
- What is the extent of the duties of good faith imposed by regulation 3 and 4 on agents and principals under the Commercial Agents (Council Directive) Regulations 1993? Was this duty breached?
Decision
- To not act in a way calculated or likely to damage or destroy the agency relationship; no
Reasoning
- Damages not payable
- The reduction of territorial scope was reasonable in the circumstances
- For the purposes of regulation 8, an agency agreement may specify the length of the reasonable time period
