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
PRODUCTION OF
GOODS

Principal s responsibility

Broker s responsibility

PROMOTION OF
SALES

NEGOTIATION OF
CONTRACTS

Principal s responsibility

CONCLUSION OF
CONTRACTS

Principal s responsibility

DELIVERY OF
GOODS TO
CUSTOMERS

Principal s responsibility

MAIN FEATURES

Direct distribution

Quasi-formal vertical
integration

Business promotion

territorial allocation
DURATION
intuito personae

MAIN FEATURES

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