Sole agent

Sole agent
Primary topic
Related topics
Methods and techniques

The sole agent determines one of the commercial types of agent. The term is in the possession of the sole right to perform the principal in a designated geographic area. The sole agent similar to the regional agent is entitled to have a commission from all contracts with customers which are from her or his assigned territory. However, the regional agent is differently related to sole agent in the case of using the additional right. Sole agents use the additional right where even marketing action of the principal in the specified agent's territories and the sales are excluded unless the contract agreement of commercial agent particularly provides otherwise[1].

Agreement of Article 15.5[edit]

There is special reference related to the person associated in the business where one of the parties is the sole distributor, the sole agent, or sole concessionaire of the other.

The wording of the Agreement of Article 15.5. in World Trade Organization (WTO) has two objectives[2]:

  • The first one is proving a clear departure from the term held in certain valuation systems where the sole agents are by their nature regarded to their suppliers.
  • Objectives of the second Article 15.5. is direct consideration of the connection of parties entirely within the provisions of article 15.4.( in WTO).

Granting an agent sole right[edit]

The right to be a sole agent, either in a state territory or for specific products is a worthwhile right because it gives an agent a monopoly. Sole rights can be imputed even in the failure to attend a written agreement. One of the examples is the seller who engages a North American agent into representing its goods. Assuming that the seller does not receive any other agents in the territory and the relationship keeps up a period of time, a sole-type relationship can be presupposed by a court when asked to consider the relationship upon termination. The more problematic example is when a European seller nominates an agent in Canada and this agent begins opening the American market. The European seller when goes to nominate an American agent, it can find itself facing a claim through a Canadian agent that, in virtue of the course of conduct, that is the sole agent for North America. Because of that the amount of notice which has to be given to the agent for termination will be affected. However, in some countries, the agent cannot be completed without reason, this can have a far more grave repercussion [3].

Footnotes[edit]

  1. (M. Wendler, B. Tremml, B. J. Buecker 2013)
  2. (R. Wolfrum, P. T Stoll, H. Hestermeyer 2010)
  3. (J. M. Klotz 2008)

References[edit]

Author: Alicja Ryszka