Frequently Asked Question About Commercial Agent

What is the difference between distributor and a commercial agent?


A commercial agent could have his principal's authority to negotiate sales or purchases in the principal's name. Therefore the commercial agent won't be described as a party to the sales contract with the customer. Further, since the commercial agent contracts in the principal's name, the Agenti di Commercio in Germania wouldn't take possession or control of the principal's goods and wouldn't take part in delivering goods from the principal to the customer. In contrast, a distributor usually takes possession of goods and then handles re-selling or distributing them on to customers, generally by contracting in its name.


What is the difference between a marketing agent and a Commercial agent?


As set out over, a commercial representative negotiates sales or buys between a person and the principal, with the principal's power to end transactions for the principal. In comparison, an advertising organization would carry out marketing actions to encourage sales or buys for the principal. Still, it wouldn't have the power to negotiate deals or bind the principal to any transactions. The Regulations do, nevertheless, increase to marketing agents to afford their protections.


What is the difference between a sole, exclusive, or non-exclusive agent?


Agenti di Commercio in Germania sole agency is once the principal cannot appoint any commercial agents to behave on its behalf in a specified territory (where the only agent is authorized to act). Still, the principal can seek customers and negotiate sales directly for itself.

An exclusive agency is once the agent gets the exclusive directly to represent the principal in a territory. The principal is prohibited from wanting to seek customers and negotiate sales directly for itself.A non-exclusive agency is once the principal is absolved to appoint other commercial agents in the same territory and seek customers and sales/transactions.


What're the obligations of a commercial agent?


Most of the time, a commercial agent must look after his principal's interests and act both dutifully and in good faith. Specifically, the commercial agent must make reasonable efforts to negotiate and conclude transactions, communicate all necessary information he must be his principal, and conform to any practical instruction distributed by his principal. Furthermore, the agent must conform to the agency agreement's terms with the principal, whether through written or verbal contract.


Must I have a written agency agreement?


No, it's not a legal requirement to have a written agency agreement set up. However, it is the case a written agency agreement clarifies the rights, duties, and obligations of both agent and principal, which assists in determining the contractual relationship between them. Both agent and principal have the right to receive a signed written document setting out the terms of the agency contract on request. However, it will often soon be in an agent's interests not to have a written agreement in place.


Should I accept sales targets?


Suppose you're a real estate agent and accept the imposition of sales targets into your agency agreement. In that case, you're getting that you will be contractually bound to meet those sales targets generally. If you may not meet those sales targets, you might be in breach of contract, which can have serious consequences. As such, you may decide to think carefully about if those sales targets are achievable and further, whether you would need to be contractually bound to accomplish them.


What can I do if my principal won't pay me?


You can demand sales information from your principal if you need that information to check the total amount of commission resulting from you. If you imagine that your principal isn't paying commissions due to your requirements, you can take legal action. You may also have the ability to terminate your agency and preserve the proper to a termination payment.


Just how much commission should I be paid?


At the outset of the commercial agency relationship, the agent and principal should agree on the commission's total amount to be paid. Agent and principal can also decide to alter the total amount of commission paid through the agency relationship, if desirable.

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