UNIT 2

MAIN TYPES OF

INTERNATIONAL CONTRACTS

OBJECTIVES

In this chapter you will understand the importance of international brokerage contracts within the field of international contracts of intermediation

CONTENTS

• Definition

• Sequence of contract

• Main features

• Obligations of the principal

• Obligations of the agent

DEFINITION

Term contract whereby the BROKER

(an independent contractor) is obligated to deploy an intermediation activity for the purpose of contacting the PRINCIPAL (another independent entrepreneur) with potential customers.

SEQUENCE OF THE

CONTRACT

DELIVERY OF GOODS TO

CUSTOMERS

CONCLUSION OF CONTRACTS

NEGOTIATION OF CONTRACTS

PROMOTION OF SALES

PRODUCTION OF GOODS

Principal

s responsibility

Broker

s responsibility

Principal

s responsibility

Principal

s responsibility

Principal

s responsibility

MAIN FEATURES

Quasi-formal vertical integration

Business promotion

Direct distribution

MAIN FEATURES

territorial allocation

DURATION

intuito personae

Duration

Intuito personae

OBLIGATIONS OF THE PRINCIPAL

Payment of commission

Reimbursement of expenses ?

OBLIGATIONS OF THE PRINCIPAL

Information

Assistance

OBLIGATIONS OF THE BROKER

Search customers and promotion

Act diligently and in good faith

OBLIGATIONS OF THE BROKER

Information

Confidentiality

THANKS A LOT