This agreement sets out the conditions between an importer and a company in which the importer will see, introduce, introduce and transmit new customers and generate new transactions for your company. It does not grant the importer any right to sell the goods or services. An agency agreement generally specifies the extent to which this representative is entitled to represent the supplier in its dealings with general citizenship and, in particular, with the supplier`s customers. For example, the conclusion of an exclusive agency would prevent the supplier from appointing other representatives in the territory and would also limit the supplier`s rights to market and sell its products directly to the customer. On the other hand, a single agency would also prevent a supplier from creating other representatives in the territory, but allow the supplier itself to search for sales in the territory. Finally, the supplier can grant an agency on a non-exclusive basis, which allows the supplier to designate several representatives in the territory, while allowing the supplier itself to search for direct sales with customers. Choosing the employment of an agent or distributor requires careful consideration of the supplier for the many reasons summarized in this article. The supplier`s decision on the best delivery channel on the market should not only be driven by profit, but also after careful consideration on whether the representative or distributor will contribute to improving the supplier`s brand and increase revenue by committing to guarantee the safety and use standards of the products sold and the supplier`s brand building and/or products, in order to develop a reasonable confidence in customers. An agent can be described as an intermediary that brings together the supplier and the supplier`s customers. The best example of this relationship is that of a real estate agent who helps a homeowner to market his property to the general public and who, through these marketing efforts, finds a willing and capable buyer. The broker brings the owner and buyer together so that they can conclude the sale contract.
1. If the contracting parties terminate this contract for any reason, the company will pay the agent only for the sale of the products made before the termination date. In general, the main reasons for the lack of understanding of the differences between the purpose, scope and function of a representative and distributor, and how the involvement of either supplier affects the supplier`s activity, and to what extent. In this article, I intend to provide a complete overview of what an agent and distributor is, as well as a general overview of the pros and cons that a supplier should consider before entering into an agency or distribution agreement. The role of salespeople is highly variable. In their most basic form, distribution agency agreements include the payment of commissions for sales generated by the agent. More complex agreements may include the agent marketing the product or service, storage and distribution, and withdrawal of payment. A distributor, other than an agent, buys the products from the supplier and then resells them to its customers in a given area and on its own terms. The distributor is not an intermediary and therefore enters into a sales contract directly with its customers.