Export Agency Agreement

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How to Draft an Agency or Distributor Agreement?

Sales Contract for Export Key Points of Export Agency Agreement: Date, Name, head office, and place of business of the exporting company and that of the foreign firm.

1. Appointment
The company officially appoints the foreign firm as its sales representative for the specified products in the specified foreign market.

2. Territory
The geographical area for which the sales representative will be responsible is specified.

3. Term and Scope
The period for which the Agreement is to remain in force is indicated and to govern all transactions between the company and the Sales representative.

4. Importer Responsibilities

The Sales Representative agrees to maintain an adequate sales organization and use its best efforts to sell the Company's product in the assigned territory.
To maintain active contacts with the customers, to keep the Company fully informed of all governmental, commercial, and industrial activities and plans that could affect the sale in the assigned territory.

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How to Draft and Agency Agreement?
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To provide market information to the company; to recommend improvements to sales plans, assist in developing sales strategy and clarify customers' product requirements.
To transmit, on request, proposals and technical data to customers, interpret customer inquires, requirements, attitudes, and to assist in contract negotiations.
To perform customer liaison services with regard to any customer order for the Company's products.

5. Exporter Responsibilities

The Company agrees to keep the sales representative advised of new prospects, sales plan and objectives for its market.
To provide the representative with informative and advisory materials about the business practices to be followed.
To support the representative with printed commercial and technical data and information and to pay compensation as specified.

6. Compensation
The Company agrees to pay a commission to the Agent based on the net sale price (FOB factory) of the products sold; in dollars; and within (30) days of the Company receiving payment from the customer.

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How to Draft an Agreement?

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