Export agency agreement

Export Agency Agreement: Export agency agreement may be defined as the document which establishes the commercial relationship between the principal and the agent.

Export agency agreement contains the conditions agreed upon by the concerned parties for the conduct of business. Following are the contents of export agency agreement:

(i) Parties to the contract

(ii) Contractual products

(iii) Contracted territory

(iv) Duration of the contract

(v) International buying groups may like to contact the exporter directly.

Exporters should reserve the right to negotiate directly with international buying groups in their own countries for order which ultimately will be executed in the agents territory-whether the agent will be eligible to commission on such sales should be made explicit in the agreement.

(vi) When credit terms are involved and the principal is not sure of the credit worthiness of the buyer, he should have the right to reject the order.

(vii) Payment of commission 

(a) Rate at which commission is to be paid

(b) Calculated on percentage basis-the base for such calculation

(c) The time when commission becomes payable

(viii) Settlement of disputes

(ix) Renewal and termination of agency.

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