Exclusivity Agreements

[Tremain]

Hey David,

Can you please point me in the direction of the best way to get a blank exclusivity agreement to use as a "go-by" for myself acting as buyer seller between producer in north america and end point distributor in europe.  You have made reference to such an agreement in some of your columns regarding wine export(which I know you're tired talking about, but this is about contracts). Is it necessary to have this agreement(assuming you can get it) with BOTH the exporter and distributor?  Is it essentially the same document? As I will be a poor startup, and if you think absolutely necessary, can you advise how I would go about finding a quality lawyer that won't take my shirt to help finalize these docs?

Really appreciate your forum...

Thanks!

Brad

[Bresal]

Dear Brad-

Thanks for  your compliments-

Aggggrrrrrrrrrrrr...!Wine questions-I drink the stuff..!Ah well, better open another bottle while I reply here..MMmmmm ..lets see! Shiraz/Merlot sounds good.

Follow through on previous answers- it's all interconnected- it's a process that you are dealing with-

Just to give you a little insight on a very complex matter-

(1) Are your talking about "Territorial "Agreement  as such you Supplier has to give you such rights-to which you work as your own agent- or Do you want the right to represent the supplier , in turn you find the markets , you sell the goods , and represent a disclosed supplier, who in turn Pays you a set commission on each sale you initiated-

International trade lawyers handles contracts and such agreements - you would still be required to do most of the running around- and it will cost-

Big business then big charges apply no matter how you look at it- forwarders, lawyers , banks they all get something for their efforts-to which such charges are incorporated into the quote-

It's a simple agreement, there is no set format -and is often given to you by the Supplier- you tell him what you want, and he produces the agreement you negotiate upon the terms and thats it- You act as per your principal wishes, you can accept payments and you basically keep your clients-

But at the end of the day , if you are not proficient in International trade knowledge then the Supplier won't give you such a representation nor territorial agreement- Please go to my site- look at the Rumai agent listing and work with the similar conditions as applied between you " the Agent acting on behalf a disclosed principal" and the supplier - "The Principal"-

In all cases the supplier is home you must contact- you have very little to do with the buyer, unless you become a "Buyers agent"-meaning that you supervise importations of goods for a disclosed buyer of for wages-Hence its a different application to what you are seeking-

Other wise  you have to become an intermediary(Buyer/seller) and work on behalf of an "undisclosed principal" In where you Buy the goods from the supplier at lower price using your end buyers money as quoted for such goods at a higher price- but again that needs trading skills to apply as well-

The big difference is among other things- In where you represent the supplier as being "disclosed " the supplier takes all legal responsibilities - hence your commission is low- In the other manner you commissions are higher, but you take all legal responsibilities up to a certain  point-

I written about agency many times- so refer back to by previous answers-

I hope it helps

Kind regards

Davide G.A.papa

www.ftnexporting.com

www.ftnexporting.freeservers.com