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1、Agency,Group members: 蔡汝梅 09 钟春媚 15 许玉兰 31,Definition,Types of agency,Agencys entitlements in international trade,Agencys obligations in international trade,Why do we choose agency,Case study,1,2,3,4,5,6,Outline,7,Conclusion,1. Definition, An agency arises when one person (the principal 委托人) authori
2、zes another person (the agent 代理人) to make contracts on his behalf with third parties. It follows that there will usually be an actual appointment to confer the necessary authority on the agent. Once appointed, he shall act for the principal within the agreed authority to make contracts on the princ
3、ipals behalf.,2. Types of agency,2.1 Brokers (经纪人) 2.2 General Agent (总代理) 2.3 Sole Agent (Exclusive Agent) (独家代理) 2.4 Commission Agent (一般代理或佣金代理),An agent who brings two parties together Enabling them to enter into a contact to which the broker is not a principal,2.1 Brokers (经纪人),An agent who is
4、authorized to do all acts related to principals business It may include negotiating contacts, establishing credit, advertising, arranging for shipping, and setting up overseas offices and outlets(销售点).,2.2 General Agent (总代理),It is authorized by the principal to exclusively transact the business of
5、his principal of a specific kind within a specific place Sole agency will not sell other goods that compete with the principals,2.3 Sole Agent (Exclusive Agent) (独家代理),A firm or a person who acts under some degree of instructions from his principals to sell (or to buy) goods on the best terms obtain
6、able. He charges a “commission” for his services under some kind of agreement or contract.,2.4 Commission Agent (一般代理或 佣金代理),Whats agencys entitlements in international trade?,3.To charge commission and disbursement (垫付款),4.To be entitled to own lien (留置权) of related goods and money,1.To sign commis
7、sion contract (签订委托合同),2.To be aware of all information about its entrustments,Whats agencys obligation in international trade?,1.To perform commission contract(履行委托合同),3.To obey the national laws, regulations and other foreign trade management systems,2.To report any events related to the business
8、to the principal,4.To keep any business secret and relevant information caused by agency service,5.To safeguard the interests of the principal and minimize the loss,Why do we choose agency when exploring international market?,Connections,Human resource and traffic cost,Time and energy,Agency,Case st
9、udy,In February 29, Company A (a domestic trading company) entrusted Company B(a foreign trade agent)to export goods to foreign customers and signed an agency agreement as follow: After the goods have been exported, Company A is not allowed to request any payment by company B no matter on what reaso
10、ns does the customer refuse to pay the foreign exchange payment. After receiving full payment from Company A ,Company B should pay to export supplier with 5 working days. Then, Company B worked as buyer to sign a series goods contract with Company C (export supplier). However, due to company As fore
11、ign customers tight liquidity(资金周转紧张) , Company B cant receive the payment timely and fail to pay for the Company C. Soon after, Company C accused Company B and required Company B for payment in arrears(支付拖欠货款) in the reason of Company Bs payment default(拖欠货款). Company B replied to the charge and di
12、sclosure(披露)Company A( principal委托人 ).,Question: Who should responsible for the payment in arrears(拖欠款项)?,Answer: Company A should responsible for the payment in arrears.,Analysis :In this case, Company A pay the foreign exchange fee to Company B, and then Company B transfer the payment for goods to
13、 the export supplier (Company C). However, due to Company As failure in providing the payment timely, Company B cant pay for the Company C. So, the original fault of this case is caused by Company A and it should take the full responsible towards this event.,Conclusion,Withtherapiddevelopmentofinternational trade,agencyplaysanimportantrolein connectingthecountriestrading.Allkinds ofagenciesowncertainentitlementsand
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