According to the financial dictionary committent - a party to a contract of commission, which entrusts to another party (the commission) to make a deal with the goods for cash consideration (Commission).The deal can also be accomplished with the bills, foreign exchange, bonds and so on. D. In addition, it is made on behalf of the commission, but for the benefit and at the expense of the principal.The item he goes to a special off-balance sheet account and not a property.
Commission - is an agreement
conclude an agreement, the reseller buys and sells material assets on its own behalf, but he must act strictly within the powers available to it.Otherwise, the document may be canceled, and the commission will be charged with the loss.If the transaction involved some third person, all this must be stipulated in the agreement.Such trade can wear a one-off.During a certain period can be accomplished several transactions for the import, export, to certain banking operations or hiring.In general, the commission principal - these are people who only commit to sell any goods.
How to avoid trouble during the transaction?
To avoid confusion, all you need to specify in the contract.In addition, the consignor shall reimburse all costs associated with the fulfillment of an order.The signing of such agreements is widely used in international trade, but in this case it is a one-off.An important part of this agreement is to outline the powers of the parties on the technical and commercial terms.Committent it should set out in the agreement to specify everything you need, and write that the transaction will be performed only once.If everything is done correctly and legally competently executed, then each side will fulfill their obligations, resulting in such a case will bring considerable profit.Otherwise it will be difficult to conduct and record income instruments that may affect their size, and the deal will bring only losses.
What is fixed in the contract?
This document should include information on the implementation of minimum prices for export of goods and maximum if the import is done.Also, the minimum delivery time consignment of goods in the agreement should specify the principal.This is to ensure that in the future no misunderstandings.The document prescribes more technical and qualitative data, limiting the amount of responsibility on all sides, as well as the size and order of payment of remuneration and commission funds.You should know the fact that the commissioner and the principal shall fix his duties and the main terms of the contract, such as quantity, price, delivery terms, credit terms, if they are available, and so on. D.
Responsibilities intermediary
Partners on the opposite sideand sellers - all commissioners.These persons are responsible and must submit a report to the principal.They are responsible for the safety of the goods, t. E. It must be in the proper form throughout the entire period of the contract.Intermediaries can perform additional commitments in the form of services in market research, advertising, maintenance, or for the protection of commercial interests.The agreement should have information on the remuneration, which must cover all expenses incurred by commissioners.Its value can increase the adoption of additional guarantees.For example, if the purchaser is a third party, and the guarantor - the seller, then the mediator takes responsibility for the solvency of buyers.In this case, the commissioner must independently compensate for all cash expenses, if the third party would be insolvent.
Contracts with organizations
Foreign trade companies, which act as a guarantor, the document must include the seller's responsibility.This applies in particular to the timeliness and completeness of payments.In any case all the commercial documents must be in order, so that in case of inspections or some dispute could understand and calculate sales and cash.Please note that the wiring from the principal ones are set, and in the securities of an intermediary - the other.They depend on what duties consisted agent under a commission agreement.If the guarantor is an organization, it can engage in the manufacture of goods, and the company must fund transportation to the point of delivery.If it resells the products of another manufacturer, then the principal shall on their own finances foreign trade transactions, namely, the producer pays the cost of goods.
Treaty Commission - a record of all kinds of relationships
This agreement is bilateral, so each side has its own rights and obligations.Administrative, financial and personal relationship are recorded between the guarantor and mediator in the process of working out the conditions of mutual settlements.If the commissioner is a company in which the capital has been invested by the principal funds while financial and other relations are maintained on the basis of trust.It is possible for an intermediary that sells products at low prices, then it must make up the difference guarantor, unless he proves that it was not possible to sell the property at a specified cost and selling at a lower price warned losses.It should be noted that the contract with the consignor and used in the sale of shares.In general, such an agreement should be concluded with the sponsorship sales to another person.
