Gil Sperling

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Foreign Representation Agreement

September 20, 2021 by gilsperling

To improve export marketing and revenue growth, it is important to appoint a good local representation. Assuming that setting up a representation agreement is based on sound business principles and a good relationship, the next part of the process is to enter into a written agreement called a representation contract. Start by writing topics to be covered in your agreement. Then, let your lawyer incorporate these and other universally recognized practices into your agreement. If you have to terminate the contract, make sure that your contract addresses the following legal issues and offers you an exit clause: what is the designated sales area and is it exclusive? Foreign representatives often claim marketing exclusivity in a country or region. It is recommended not to grant exclusivity until the foreign representative has demonstrated competence or is granted for a limited period, defined, for example. B one year, with the possibility of extension. It is possible that it is also necessary to define the territory covered by exclusivity, while the legislation of some countries may prohibit this type of restriction. When designing the contract, you must pay particular attention to safeguarding the interests of your company if the representative proves unsatisfactory.

Your contract may include a replacement clause or set a fixed term for the agreement. Learn as much as possible about the legal requirements of the representative`s country and get the assistance of a qualified lawyer when preparing the contract. How do you think foreign representatives are accountable? Consider including performance requirements, for example.B. a minimum volume of turnover and an expected rate of increase. . . .

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