Unit 11 Flashcards
Collaboration and distribution agreements
Entrepreneur’s Goal:
Attract clients for goods or services.
Need suitable market entry infrastructure.
Market Entry Methods:
Based on business size, target market, specialization.
In-house staff or external entrepreneurs for distribution.
Agency Agreement Definition
Agent promotes acts or operations on behalf of another.
Agency agreement Characteristic Features:
Long-lasting, independent, onerous, and bilateral.
Agency agreement Paries involved
Principal (Hiring party) and Agent (Promoter).
Agency agreement Obligations of Parties:
> Agent: Good faith, non-compete, promotion.
Entrepreneur: Provide materials, confirm transactions, pay remuneration.
Agency agreement Contract Termination:
Causes: Fixed term, mutual agreement, breach, bankruptcy, death of agent.
Compensation Regime: Clientele compensation, damages.
Commercial Concession Agreement Definition
Distributor buys products for resale under specific conditions.
CA Roles
Distributor acts in own name, bears risks.
Principal provides products, limited territories.
CA Obligations:
Distributor: Buy specified quantity, maintain minimum stock.
Principal: Sell under agreed terms, exclusivity clauses.
CA Termination:
Causes detailed, no compensation beyond repurchase.
Franchise Agreement Definition
Franchisor allows another (franchisee) to operate a business.
FA Elements of Distribution:
Common name, technical knowledge, assistance.
FA Obligations:
> Franchisor provides information, assets, assistance.
Franchisee pays agreed price, operates business.
Master FA Definition:
Franchisor assigns franchise rights for a large territory to a master franchisee.
