Eastern Gas and Energy were two subsidiaries of Eastern Electricity plc. Tamarind was appointed by Eastern under written agreements for the purpose of pre-selling contracts to existing British Gas customers in anticipation of the free market brought about by the deregulation of the gas and electricity supply industries. The supply contracts were to be sold “on the door step”, either as a result of cold calling or through recommendations.
The agreements had been drafted by Eastern and were not negotiable. The agreements were described as “service agreements” and not commercial agency agreements. However, the agreements all referred in various places to the Regulations.
Following the termination of the agreements, Tamarind brought a claim against Eastern under the Regulations. Eastern argued that Tamarind’s activities had been “secondary”. As such, it was not entitled to the rights and protections given by the Regulations.
There was a trial of two preliminary issues to determine whether the agreement made between Tamarind and Eastern was subject to the Regulations. The preliminary issues for determination were:
The Court determined the preliminary issues as follows:
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Written by Jane Elliot