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Managing an agency

What can you hold an agency to when results do not come?

Almost everything published on this question is written by agencies. The statute that decides it runs to one sentence and is rarely named.

The short answer

Where a UK business pays for a service, section 13 of the Supply of Goods and Services Act 1982 implies that the supplier will carry it out with reasonable care and skill. That is a standard of competence, not a promise of results. A firm that wants to hold a marketing agency to an outcome has to write the outcome into the agreement.

Key takeaways

  • The Consumer Rights Act 2015 covers consumers. The Act that governs a firm buying marketing is the Supply of Goods and Services Act 1982.
  • Section 13 implies reasonable care and skill: how the work was done, not what it achieved.
  • Section 16 lets an express term vary an implied one, but only where it is inconsistent with it. A scope list is not.
  • Section 3 of the Unfair Contract Terms Act 1977 makes a liability exclusion in standard terms effective only so far as it is reasonable.
  • Section 5 of the Limitation Act 1980 gives six years, so the real constraint on a claim is the evidence.

Search for what can be done about an agency that is not delivering, and the Consumer Rights Act 2015 comes up quickly. It is the wrong Act. The 2015 Act covers contracts between a trader and a consumer, and a UK professional services firm buying marketing is a business buyer. The statute that governs the contract is older and shorter than the one most pages name: the Supply of Goods and Services Act 1982.

The distinction is worth ten minutes, because the 1982 Act does something a firm assumes its own paperwork had to do. It puts a quality standard into the agreement whether or not anybody typed one. Read section 13 against two neighbouring sections and the 1977 Act it defers to, and a managing partner can work out which complaints on their list are a breach and which are a disappointment.

The Act that covers your contract is not the one you will find first

The Consumer Rights Act 2015 applies where a trader supplies a consumer, and the Supply of Goods and Services Act 1982 governs a business to business supply of services. The 2015 Act pulled consumer contracts out of the older statute and restated the duty for consumers in its own section 49. The 1982 Act was left in place for everybody else, which means every practice or recruitment agency in the UK buying a service from another business.

What reasonable care and skill promises, and what it does not

Section 13 implies a standard of competence, and competence is about the way work was carried out rather than the result it produced. A campaign can be competently planned and delivered on time and still return nothing a partner would call a result. On the implied term alone, that is not a breach.

This is where the frustration at month four usually sits. The complaint is about outcome, and outcome is the one thing the implied term does not reach. The complaints that do land are quieter: work not done at all, or work done below the standard a competent supplier in that field would accept. Delay belongs with them and has its own provision, because section 14 implies that where the contract fixes no date the service will be carried out within a reasonable time.

What the statute supplies when the contract says nothing
What the firm assumed it was owedWhat the position is where the agreement is silentWhat to write in instead
A result, such as a number of enquiriesNothing. The implied term covers competence, not outcomeOne named measure, and the date its baseline is read
A timescaleA reasonable time, under section 14, judged on the factsA date per deliverable and what follows if it slips
A standard of workReasonable care and skill, under section 13An acceptance test somebody at the firm can apply
A price for work outside the scopeA reasonable charge, under section 15A rate, and written authorisation before it starts
The middle column is what happens if nobody writes anything down. More generous than partners expect on quality and timing, and empty on results.

A statement of work does not remove the standard

Section 16(2) provides that an express term does not negative a term implied by the Act unless it is inconsistent with that term.

It does not work that way. Describing the work is not inconsistent with doing it competently, so the implied standard survives alongside the scope. Section 16(1) does allow an implied duty to be varied by express agreement, or by a course of dealing binding both parties, and it says so subject to the 1977 Act. So the clause worth finding is not in the scope at all. It is in the limitation of liability, usually the shortest paragraph in the pack.

A retainer schedule is weaker than it looks for the same reason: what a retainer actually covers sets out what is included, never to what standard.

A liability cap in standard terms still has to be reasonable

Section 3 of the Unfair Contract Terms Act 1977 applies where a firm contracted on the supplier's written standard terms of business. Where it applies, the supplier cannot by reference to a contract term restrict its liability for its own breach, or claim to be entitled to render a performance substantially different from what was reasonably expected, except so far as the term satisfies the requirement of reasonableness. Section 11 sets that test by what was fair and reasonable to include, given the circumstances in the contemplation of the parties at the time.

Now the part that runs against instinct. Section 3 turns on the contract having been made on written standard terms of business, so where terms were genuinely negotiated rather than presented as a pack it does not apply to them. A UK firm that signed the agency's standard document unamended can therefore stand in a stronger position on a liability cap than one that negotiated the same cap line by line.

Whether amended terms still count as standard terms is a question of fact for a solicitor, not an argument for signing anything unread. The useful part is knowing the question exists before the review meeting.

Before you start the difficult conversation

Not sure whether the problem is the agency or the brief?

Free to your firm. The agency pays us, and only if the relationship works, which is why we would rather tell you to rewrite the brief than introduce somebody to repeat the last twelve months.

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Four steps before you talk about leaving

Most of what a firm wants to enforce was never written down, so the first move is to write it down now rather than to reach for the contract. None of it needs a solicitor.

The sequence, in order, before anybody mentions notice
  1. Put the standard in writing, to the agency, with a date. One measurable expectation and when it will be read. From the day it is sent, the argument stops being about what anybody remembers agreeing.
  2. Ask for the evidence rather than the report. Access to the accounts themselves, and the dates the work was actually done. A supplier doing competent work loses nothing by handing that over.
  3. Set a remedy period. A stated number of weeks and a stated consequence if it is not corrected. Much of what looks like breach is a supplier nobody has told plainly.
  4. Then decide on the contract as written. Read the notice and liability clauses before the review meeting rather than after it.

When you should not appoint anybody else yet

If the brief never said what the work was meant to change, replacing the supplier changes the invoice and nothing else. Two situations are worth ruling out first. One is where nobody at the firm owns the relationship. An agency with no counterpart sets its own priorities, and a new agency will do the same on a new rate. The other is where the firm cannot state the baseline. Without a number from before the work started, no supplier can be held to an improvement, and the next engagement ends the same way.

It is worth being honest about how this agency was chosen. A shortlist built from directory profiles was probably filtered on solvency rather than delivery, and what those badges actually verify explains why a verified supplier can still be the wrong one. Before moving, establish what the firm already owns, because that changes what a replacement is asked to build.

Where the contract is silent, the 1982 Act supplies the standard, the timing and the charge. It supplies no results, and that gap is closed at the start rather than at the review. Partners who would rather test the brief before changing supplier can see what we assess before recommending anyone.

Frequently asked questions

What partners ask us when an agency is not working.

Is poor performance by a marketing agency a breach of contract?

Not by itself. Section 13 of the Supply of Goods and Services Act 1982 implies that the service will be carried out with reasonable care and skill, which is a standard of competence rather than a promise about the end result. A shortfall against a result is a breach only where somebody wrote that result into the agreement.

Which Act applies to a firm's contract with a marketing agency?

The Supply of Goods and Services Act 1982. The Consumer Rights Act 2015 governs contracts between a trader and a consumer, and a UK practice buying marketing is a business buyer, so the remedies in the 2015 Act are not open to it.

Does a statement of work replace the implied standard?

No, unless it is written to. Section 16 of the 1982 Act allows an implied term to be varied by express agreement, but section 16(2) adds that an express term does not negative an implied one unless it is inconsistent with it. A scope list is not inconsistent with competence.

Can an agency limit what it is liable for?

Within limits, and the limits are statutory. Where a firm contracted on the supplier's written standard terms of business, section 3 of the Unfair Contract Terms Act 1977 makes a term restricting the supplier's liability for its own breach effective only so far as it is reasonable. Whether a particular cap passes that test is a question for a solicitor.

How long does a firm have to bring a claim?

Section 5 of the Limitation Act 1980 provides that an action founded on simple contract cannot be brought more than six years after the cause of action accrued. Six years is longer than most partners assume, so the real constraint is evidence rather than time.

Sources and useful reading

  1. Supply of Goods and Services Act 1982, section 13, for the implied term of reasonable care and skill.
  2. Section 14, for the time of performance, and section 15, for a reasonable charge.
  3. Section 16, including section 16(2).
  4. Consumer Rights Act 2015, section 49, the consumer equivalent.
  5. Unfair Contract Terms Act 1977, section 3, and section 11, for the reasonableness requirement.
  6. Limitation Act 1980, section 5, for the six year period.

This article is commercial decision support and is not legal advice. Each statutory position summarises the provision linked beside it, located on 26 September 2026. It is not a substitute for advice on a particular agreement, whose express terms may change the answer. Nothing here describes the terms offered by any named agency.

Who wrote this

Agency Network Solutions

We introduce professional services firms to one vetted specialist agency. The agency pays us, and only if the relationship works, which is why recommending the wrong one costs us money. Registered with the Information Commissioner's Office, registration ZC201179.

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Tell us what the agency was meant to change and we will tell you whether the brief was ever capable of it.

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