Export Agency Agreement

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How to Draft an Agency or Distributor Agreement?

"Working knowledge of a contract is essential. You could find yourself in legal hot water that even the best attorneys can't get you out..."

Key Points of Export Agency Agreement:

Date, Name, head office, and place of business of the exporting company and that of the foreign firm Sales Contract for Export

1. Appointment

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

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How to Draft an Agency or Distributor Agreement

Key Points of Export Agency Agreement
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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.

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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