What Is a Market Proxy?

Agency transaction is a legal concept in which the agent performs civil activities in the name of the principal (the principal) within the authority of the agency, and the resulting rights and obligations directly affect the principal (the principal).

Agency transaction

Right!

Agency transaction is a legal concept in which the agent performs civil activities in the name of the principal (the principal) within the authority of the agency, and the resulting rights and obligations directly affect the principal (the principal).

Agency transaction refers to a transaction method in which an agent, that is, an agent, accepts the commission of a manufacturer or a seller to purchase or sell goods on its behalf, and draws commissions in proportion to the purchase amount or sales. Agents generally do not control the ownership of the goods, do not bear any market risks, and generally have no right to decide on the prices and promotions of the goods. ^[1]

Agency transaction refers to a transaction method in which an agent, that is, an agent, accepts the commission of a manufacturer or a seller, and an agent is to purchase or sell goods and to draw commissions in proportion to the amount of purchase or sales.

Chinese name

Agency transaction

Foreign name

Trading agent

Characteristics of agency trading

Independent legal person, professional company

The relationship between the principal and the agent is not the relationship between the parent company and the subsidiary or the head office and the branch, but a trading or business partnership. Agents must have independent legal person qualifications, a complete enterprise operating organization, higher-quality professionals, stronger funds, and developed sales channels.

Shared risk and benefit

Since the source of the agency's profit, commission, is closely related to the performance of the agency business, the responsibilities, rights, and benefits of the contractor and the agency can be clearly established through contractual forms to establish a more stable benefit sharing and risk The relationship of sharing, market expansion, development and conspiracy, mutual benefit.

Voluntary combination, two-way choice

The circumstances of the commissioner and the agent are very different. When looking for agency cooperation, the two parties must not act arbitrarily or forcibly "match". Only by adopting the principle of voluntary combination and two-way selection according to the respective circumstances of the two parties can it be possible to establish a relatively stable, Mutually beneficial agency relationship.

Cooperation according to law, clear responsibilities

In the agency business relationship, the responsibilities, rights, and interests between the commissioner and the agent are maintained by legally effective agency contracts. Cooperation in accordance with the law ensures the stability of the relationship between the two parties.

Flat price

In the agency business, for the long-term common interests of both the commissioner and the agent, the sales price, purchase price, and labor cost of the goods or business that the agency represents are generally not determined by the agent itself, but by the commissioner and agent The two parties agreed on the market competition, supply and demand, or even the commissioning party. Once the price level is determined, the entire price range that the agent is responsible for should implement this uniform price level. The agent cannot unilaterally arbitrarily change. This pricing method can avoid the consequences of "cannibalism" caused by different prices of products produced by the same enterprise in the market. The better the agent's performance is, the higher the commission commissioned by the manufacturer to the agent-the higher the profit.