Settlement of accounts

Orders should be sent to us direct for shipment, and we will arrange for customers to pay us. You may issue us with quarterly/monthly statements of account, which will be paid by sight draft at the bank of your choice.

We would expect you to supply orders from your stock, or we will ship consignments as soon as you send the order to us.

Customers should pay us direct by letter of credit, on each sale, and we will remit your commission by bill once you have submitted your monthly/quarterly account. Credit is not to be offered without our express consent.

10.3.7

Support from the principal

The prospective agent will want to know what support you will give him in his efforts to sell your goods.

Our products of course carry a one-year guarantee and we will replace any faulty item carnage paid.

As you know, our company offers a full after-sales service, which is essential in establishing the reputation of our brands, and your customers need have no worries about spare parts or maintenance.

We will offer you additional expenses of £5,000 per annum for any advertising that you think will help sell the products. This will be increased after a year if we think sales warrant it.

10.3.8.

Delivery

Providing there are no unforeseen delays we will be able to deliver six weeks from receipt of order.

We would hope that you will keep large stocks of our three main ranges. However, we will be able to deliver within a month of receiving orders.

Delivery should not take longer than three weeks providing we have the items in stock.

10.3.9

Duration of the contract

The length of time for the contract is usually discussed after the agency has been agreed. Nevertheless, it would be stated as follows.

The contract will be from 1 March for one year, and, provided both parties agree, will be renewed for a further year.

We feel that nine months should be enough time to decide whether it is worth continuing with sales, and will make out the first contract accordingly.

Subject to our mutual agreement, the contract will be renewed annually.

10.3.10

Disagreements and disputes

A provision is usually made for disagreements and disputes. This too, would not usually appear in an opening letter, but in correspondence confirming the agency.

In the case of disagreement over conditions or payments, the matter will be settled by arbitration.

As a rule we follow American law to determine legal disputes over contracts.

Note: Arbitration is when a neutral organization settles problems between the principal and agent. A Chamber of Commerce or Trade Association often acts in cases of arbitration.

10.3.11

Special terms

In some cases agents are offered special terms if they are prepared to hold themselves liable (responsible) for their customers' debts. These agents receive a 'del credere commission', which is a special commission to compensate them for the risk they take.

We are prepared to offer an extra 2¹/2% del credere commission if you are willing to be responsible for customers' debts.

In addition to the 12% commission on net sales, we will offer a further 3% del credere commission, if you are willing to deposit £5,000 as a security to guarantee all customers' debts.

10.4

Date: 2016-01-03; view: 769