Agency and Exclusive Dealer Agreements

The main elements of the agency relationship can be summarized as follows:

• The agent acts as an intermediary in contracts involving a commercial enterprise or performs them on behalf of that merchant;
• the agency’s intermediary or contracting activities are based on a contractual relationship on which there is a legal basis,
• the continuity of these activities and the continuation of these activities by the agency as a profession.

What are the types of agents?

1) Sales and Release Agents

• Sales and Release Agents. The most common types of agents in the market  are sales and release agents.
• Insurance Agents.
• Shipping Agents.
• Brokerage Agents Operating in the Capital Market.
• Travel Agencies.
• Transportation Agents.

What are the Agency Features?

• He is an independent merchant assistant. He has his own title of merchant.
• The agency relationship is based on contract.
• It has the right to monopoly.
• The agency relationship is continuous.
• There are two types, intermediary agent and contracting agent. * Has acquired a profession.
• He gets paid for the work he sees.
• It can be a natural or legal person.

What are Agency Rights?

• Right to charge a fee: The fee shall be determined according to the provisions of the contract, or according to the commercial practice in the place where the agent is located, or by the Commercial Court of First Instance there. The agent is entitled to the fee as soon as the transaction is carried out and the fee is paid within 3 months from the birth of the fee and in any case upon the termination of the contract.
• Right to claim interest
• Right to imprisonment
• Monopoly right
• Right to claim extraordinary expenses

What are Agency Debts?

• To see the client’s affairs and protect his interests
• Don’t provide information
• Follow the instructions
• Taking preventive measures
• Timely payment of the money belonging to the client: The agent is authorized to receive the costs of the goods delivered by him. The agent must pay the client this money belonging to the merchant and other money belonging to the client in accordance with the agency agreement on time. If the agent fails to do so at the time when the money belonging to the client should be sent or delivered, he is obliged to pay interest and, if necessary, compensation from that moment onwards.
• Non-competition: The non-competition agreement is concluded for a maximum of 2 years. The merchant shall pay the agent an appropriate compensation due to the limitation of competition.

What are Agency Authorizations?

• It is authorized to make and accept all kinds of warnings, notices and protests on behalf of the client.
• If it is specially authorized, it can make a foreign exchange commitment.
• On behalf of the client, he is authorized to sue for contractual disputes and to represent the merchant in the lawsuit filed.
• With the special or written permission or power of attorney of the client, the agent is authorized to accept the price of the goods that he has not personally delivered and to take delivery of the goods for which he has not paid.
• Making protective statements to the client merchant.

What are the Types of Agents?

• What is an Intermediary Agent?  A person who makes it his profession to mediate in contracts involving a commercial enterprise on a permanent basis within a certain place or region on the basis of a contract without being a merchant. In TI’K, this type is essentially regulated. The relationship between the client and the merchant is not subject to form.
• What is the contracting agent (Contractor)?  A person who makes it his profession to make contracts on behalf of 0 enterprises that concern a commercial enterprise on a permanent basis within a certain place or region on the basis of a contract. The authority to conclude contracts is given in writing. The relationship between the client and the merchant is subject to written form.

Expiration: Expiry of the period, notice of termination (3 months in advance), termination for just cause, bankruptcy, death, restriction.

The “Single Vendor Agreement” also facilitates international trade; It is a type of contract that allows the sale of goods and products more easily in foreign markets.  Thanks to the Single Vendor Agreement, exports in each country  can be made through a single distribution center in that country.

What are the benefits of a single seller?

In this way, there will be the existence of more than one sales relationship. In addition, the sole seller is under the obligation to continuously carry out the sale of the manufacturer’s goods. In this direction, the obligation to increase and market the version of the relevant product is also continuous.

Distributorship Agreement: It is a type of agreement between the manufacturer/exporter company (supplier) and the company that will distribute or market the products of this company abroad. Its basis is the resale of goods received from the supplier within the framework of the rules of the agreement.

What are the Necessary Articles in the Distributorship Agreement?

1. Address information of the contracting parties.
2. Subject of the contract.
3. Description of the product or service
4. Scope of return or exchange of product or service
5. The form of sale or presentation of the product or service.
6. Criminal sanctions in case of violation of the contract.