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Chapter 11 Agency;11.1 Background Information
General agent: a general agent may be a firm or a person who acts under some degree of instruction from his principals to sell (or to buy) goods on the best terms obtainable. He charges a commission for his services under some kind of agreement or contract.
Sole agent: similar to general agent, a sole agent may be a firm or a person who acts exclusively for one foreign principal with exclusive (or sole) agency rights to sell on a commission basis certain commodities in a certain area under some kind of agreement or contract for a specified period. A sole agent will not sell products that compete with those of the principal.
Commission agent: a commission agent is not exclusive. The principal can appoint one or several commission agents in the same area at the same time. Every agent will do his best to maximize sales for his principal, because he lives on commission which is usually a percentage of the sales he makes.
;11.2 Situational Conversation
Section 1: Agency (1)
A: First of all, I would like to thank you for your kind invitation to visit your beautiful country. I hope my visit will help to promote a friendly relationship between us.
B: We’ve been looking forward to your visit. It is a great pleasure for us to have you as our guest. It is always more convenient to discuss things face to face.
A: I would like to tell you that my clients are very satisfied with the last delivery of your slippers. The styles and colors are very much to the taste of our market.
B: We’ve received some similar comments from other Australian firms too.
;A: I understand you are selling the same products to some other Australian importers. This tends to complicate my business. As you know, I am experienced in the business of slippers and enjoy a good business relationship with all the leading wholesalers and retailers in that line. I have a mind to expand this business in the years to come. One of the reasons of my visit here is
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