correct expressions

[Hanka]

Hi,

could you please tell me how you would call a contract under which Party A (the agent or commercial representative or dealer) offers, sells and represents Party B´s products on the territory assigned to it. At first I thought it was a "contract on commercial representation", but my google search did not give many results. Then I also found "commercial agency contract" and "dealership agreement", but I am not sure whether these are the same or different contracts.

And my second question: Is it possible to say that "the contract covers sale and commercial representation of products"?

Thanks a lot!

Hanka

 

[David L.]

Do you mean a Franchise Agreement?

=an authorization granted by a company to an individual or group enabling them to carry out specified commercial activities, e.g. acting as an agent for a company's products.

"commercial representation" Yes , but is that what party B will really be doing for Party A?
Apart from selling Party A's products, what else does Party A actually expect Party B to do?? (in simple words)

 

[Hanka]

not sure, but I think it is not about a "franchise". The agent or dealer or sales representative simply purchases products from the company and sells them on the territory which the company assigned to him under the company´s trademark.

 

[David L.]

What product/products are we talking about?

 

[Hanka]

adjustable water-saving aerators, shower head flow restrictors, shower hoses ...

 

[David L.]

This is an Authorized Sales Agent.

This is NOT commercial representation.

 

[Hanka]

Is it then a "sales agency contract"? And what´s the difference between a sales agent and a commercial representative?

And if it is not "commercial representation", how am I supposed to modify the following sentence:

The contract covers the sale and commercial representation of products on the territory of ...

Thanks!

 

[David L.]

This goes back to my first post:
but is that what party B will really be doing for Party A?
Apart from selling Party A's products, what else does Party A actually expect Party B to do?? (in simple words) that is considered 'commercial representation."

 

[Hanka]

Party A will purchase party B´s products and sell them on the territory assigned to it. That´s all. Party B will provide product training to Party A and will support Party A in its sales activities. Party A is obliged to sell the products under Party B´s trademark and is not authorized to manufacture the products itself.

 

[David L.]

Then there is no commercial representation. So omit.
Say Korea makes hoses, and wants to export them and sell them in the UK. They don't have an office in the UK so I act as commercial representative. They export their product and I receive them (do the import paper work this end) and they are stored in a warehouse here. UK wholesalers will send their orders for hoses to me, (rather than to you in Korea), and I arrange for the hoses to be sent to the wholesaler and receive payment for them.

 

[Hanka]

then it is the same as in my case. A Czech company wants to sell its products in Italy. So it appoints an agent who will purchase its products and sell them in Italy, possibly through his network of other agents.

 

[David L.]

THEN YES - he is also acting as commercial agent!
Finally got that one sorted.! :-D:lol:

 

[Hanka]

:-D Thanks a lot! So the contract is a "commercial agency contract" and I can say that "the contract covers the sale and representation of company xxx products"?

 

[David L.]

So the contract is a "commercial agency contract" and I can say that "the contract covers the sale and representation of company xxx products"?

Commercial Agent Contract

the contract covers the commercial representation by Hose Pipe Company UK, acting as Commercial Agent for Korean Garden Products.