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Secrets of International Trade

How to Draft an Export Agency or Distributor Agreement?


Part 1

Part 2



"In business law an offer once
by the buyer--an
export contract
comes into being"


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

Recommended further reading : Export sales contract can be informal or formal, depending on the foreign buyer.

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.

  • 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.
Part 1/ 2 <This Page
How to Draft an Export Agency Agreement? Key Points of an Export Agency Agreement

Part 2/2
Obligations on Expiration and Termination. Neither party is to have any liability to the other party in the contract

Recommended further reading...

Export sales contract can be informal or formal, depending on the foreign buyer.

Incoterms standardized contract terms that permit the parties to refer to a pre-established set of rules that can be incorporated into the contract or agreement.


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