This short article looks at the appointment of an agent and points to discuss and tie down prior to appointment.
Authority – is the agent to be a sales agent or a marketing agent? Can the agent actually conclude the contract or can he just negotiate and await for the principal to confirm everything and conclude the contract himself.
Territory/ Customer base – will the appointment be based on a given territory or customer base? If so will it be exclusive/sole rights? Will the principal retain the right to sell within that territory/ customer base himself?
Product/ Service – what will it encompass? what about future products/services and improvements to the products/ services? during the appointment?
Duration and Renewals – how long will the appointment be for what about renewal at the end. Will the appointment be linked to performance targets?
Restrictions – will the agent be restricted from selling competing products? What about sales outside the territory or customer base?
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