How to Handle Disputes in the Agent Export Contract? Leave a comment

Case

Our company represents a domestic company to export a batch of mechanical parts. All quality and price things are negotiated directly between clients and manufacturers. However, the contract is signed in the name of our company with foreign investors. We mainly perform functions such as customs declaration, foreign exchange collection, payment, write-off, and tax refund. Now there is a quality dispute in this agency business, and the customer requests a claim. Customers don’t ask the manufacturer for a claim but ask us to deal with the dispute asap. What should we do?

Analysis

The contract is signed in the name of your company. Therefore, when there is a dispute, it is also reasonable for the client to come directly to you. If there are problems, you should, together with the manufacturer as a whole, discuss how to solve it with clients.

Generally speaking, foreign trade companies, as agents, are only responsible for shipping, collecting money, paying to factories, write-offs, tax rebates. Now even if the client comes to you, you can’t promise anything. What you need to do is to promptly notify the manufacturer and let them settle it asap. It is wrong to tell the client directly that you don’t care about this matter. But it is OK for the manufacturer to let the client come to him directly without you. After all, it is the manufacturer that makes the decision. If they agree to a solution, you still need to cooperate with the implementation. Therefore, as a contractor, you still need to pay attention to the progress of this matter and communicate well.

Tips

When signing an agency agreement, you should transfer all the commitments and risks to the client to the manufacturer. Otherwise, if there are disputes, the customer will find you to solve the problem following the contract. At this time, the manufacturer can say that the agency agreement doesn’t include this content, and it is your commitment to the client that you should bear. Then, you will be in trouble.

To do agency business, you need to choose the right partner. If the product quality and reputation of the manufacturer are not high, it is also risky to agent their product export. You may be involved in some trade disputes such as quality claims. So, you must be cautious about such an agency business.

 

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