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   Agency Contact

  • What is the nature of agency contract?
  • What are the necessary guarantees of this  contract?      

Agency contract means identifying the activity through the agent, determine commission ratio, penalties, the way of compensation an ending the contract.
The contract is signed by natural consent concerning all sides. The terms of the contract should be in accordance with the local law( The agent's country), and so the agency contract should consider the following :

1- Full transparency of the  purposes of the contract as follows:

* Identifying precisely and clearly who is the agent and who is the exporter or the agent?
 * Describing precisely and clearly the target commodity (The agent subject).
 * Determining the scope of the market which is covered by the agent.
 * Determining precisely the agent's duties. If his role ends as soon as the shipments arrive or he will handle the maintenance operations and providing spare parts in case of industrial commodities.
 * Determining specifically and geographically the scope of agent contract.
 * Determining the period of the contract and how to end the contract and the procedures to do so in case, one of the parties desired to end it before the determined period in the contact.
 * Has the agent got a role in promotion and advertising.

Does the agent interfere in determining the price?

Can the parties restore to investigation in case of dispute?

2- The contract has to include all the legal conditions that required in both the agent's and the client's country, including registering the agency contract in the chamber of commerce. It should also be ratified by the embassy of each party and every amendment should be ratified too.

3- Determining the commission ratio of the agent.

4- Approving the agent's right to trade in the similar commodities
 or not.

5 -The contract should be written in two languages ( The language of the exporter's country), the language of the agent's country and other language in case of dispute.

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