Agents a vital link to consumers in international markets
An International Agency Agreement is an important tool in international trade. It is a legal contract between the principle, referred to as the first party, with an agent in another country, to sell goods or services on behalf of the principle in return for commissions.
Requirements
Though tailor made, certain fundamental principles mark the commonality of International Agreements. According to the U.S. Department of State, agreements must be "within the scope of any existing umbrella agreement, if applicable." They must also be "desirable in light of trade implications, and the interests of U.S. industry."
Contractual Obligations
Contractual Obligations include liabilities and termination terms.
Commercial business obligations include agents purchasing goods and selling them at a higher price. Each agreement has a definite time frame and leaves the room open for further extension. Each agreement outlines responsibilities of both parties. Other important commonalities in these agreements include intellectual property rights and access to confidential technical information.
Complex Local Laws
International reimbursable agreements are generally goverened by U.S Federal law.
Often an important aspect that is overlooked is the local law of the agent's country.
In some countries outside of the United States, local laws mandate a specific majority local management ownership. International non reimbursable agreements are generally governed by international law.
