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Unit 17 Agent The Study Purpose Persons suitable for the agents The principal should understand the following aspects clearly: 1. The reliability and the financial position of the firm or the person 2. Their promoting and goods-selecting skills 3. Their reliable connections in the designated area. 4. Their technical ability to handle the goods to be distributed 5. Whether this firm is also an agent of similar goods 6. Personal qualities There are several kinds of agents: they are 1. A general agent 2. A sole agent (exclusive agent) 3. Broker 4. A Commission Agent 5. Factor 6.A Del credere agent 1.The agent’s nature and service life (for instance: sole agent, credit agent, chartering agent, etc.) Ex. We are very interested in an exclusive arrangement with your factory for the promotion of your products in Bahrain. Ex. The agency is sole agency for marketing our products in Canada. 2. The duration of the agency Ex. You act as our sales agency for three years commencing from January 2008. Ex. We have decided to grant you the status of sole agent in handling our vision phone products in your country for five years. 3. Area the agent covers Ex. After paying due consideration to your proposals and investigating your business standing, we have decided to appoint you our agent in the areas your defined, subject to the following terms and conditions. Ex. We thank you for your letter regarding the sole agency for the sale of our machines in your country. 4. Obligations of agent Ex. An agent has the obligation to keep correct accounts for all the agency deals and render them to the principal according to the stipulations of the agency agreement or at the request of the principal. Ex. An agent has no right to share any profit from a transaction. What he can get is but a prearranged commission as his remuneration for his work done. 5.Purchasing and selling ways (for instance: buying or selling for agents themselves or for exporters) Ex. We wish to be your selling agent
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