RESTRICTION ON AGENT'S RENEWAL COMMISSION: AN UNREASONABLE RESTRAINT OF TRADE MARSHALL v N.M. FINANCIAL MANAGEMENT LTD.: (HIGH COURT CHANCERY DIVISION) JONATHAN SUMPTION QC SITTING AS DEPUTY HIGH COURT JUDGE

Abstract

The Plaintiff, a self‐employed sales agent, was engaged on 21st November, 1980 by the Defendant, a financial services company selling life assurance and pension policies. The terms of his engagement were contained in two successive contracts of which the latter provided, inter alia, (1) that he should be an independent contractor remunerated by commission payable on premiums generated by business introduced by him; (2) that the relationship between the two parties was that of agent and principal and (3) that that agency was an exclusive one ie the plaintiff was not entitled to act as agent for any other principal. In addition, Clause 10(g) of that contract provided as follows:

Citation

(1996), "RESTRICTION ON AGENT'S RENEWAL COMMISSION: AN UNREASONABLE RESTRAINT OF TRADE MARSHALL v N.M. FINANCIAL MANAGEMENT LTD.: (HIGH COURT CHANCERY DIVISION) JONATHAN SUMPTION QC SITTING AS DEPUTY HIGH COURT JUDGE", Journal of Financial Regulation and Compliance, Vol. 4 No. 4, pp. 397-403. https://doi.org/10.1108/eb024898