There are no specifics regarding the goods supplied

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In some cases, the agency agreement and its appendices do not specify what exactly is proposed to be sold. Only the condition obliging the intermediary to perform operations for the sale of goods is described. Sometimes the name of the product unit is indicated, but the quantity of this product and its characteristics (brand, model, grade, class, etc.) are not specified.

What does this lead to ? If the contract does not contain specific data on the product, the court, on the basis of the filed claim, has the right to recognize such an agreement as not concluded, since its subject is not agreed upon. In other words, it is not clear from the document what product is being sold, and this means that the actions business opportunity seekers email list entrusted to the intermediary are not agreed upon.

If the name of the supplied product is mentioned, but its features and characteristics are missing, an undesirable situation may arise for you. Thus, the intermediary will have the right to demand from your company, by means of the relevant transaction, a product of higher quality or different in characteristics from the one you planned to sell to the consumer.

What to do . Describe the characteristics and other distinctive qualities of the goods in the contract in as much detail as possible. If the specific property for sale is still unknown to you at the time of signing the contract, clearly indicate in the main document that the description of the goods is given in the relevant appendices, which are an integral part of the contract. It is important that the agreements and all specifications attached to them contain signatures of both parties.

The terms of the broker's remuneration are formulated in a way that is unfavorable to the supplier
Any agreement between a supplier (manufacturer) and an intermediary provides for mandatory remuneration to the latter (i.e. it is a paid agreement). This requirement is regulated by the Civil Code of the Russian Federation (clause 1 of Article 972, clause 1 of Article 991, Article 1006).

Remuneration may be expressed in various forms: a fixed amount, clearly stated in the contract; a percentage of the transaction amount with the end consumer; the difference between the actual cost of the goods and the amount stated in the contract.

Terms of remuneration of the intermediary

What does this lead to ? If a fixed fee is set, you will receive a profit limited by the amount in the contract. The intermediary will understand that his earnings will not increase if he wants to sell the goods at a higher price, so he is not motivated to increase the markup.

The price can only go up when the procedure for distributing additional profits established in the contract is beneficial to your partner. In other words, for this purpose, the document can specify that all or a large share of the profit goes to the intermediary (say, 85%). But for you as the owner of the company, such a situation is not at all beneficial, so it is better to formulate the terms of remuneration differently.

What to do . Express the broker's premium as a percentage of the transaction amount with the end consumer, and then your offer will be mutually beneficial. That is, the broker is interested in selling on terms that are favorable to you in order to earn as much percentage as possible from the sale. And you, in turn, sell the goods at a high price and also increase your profit from the transaction.