LAW 724 Lecture Notes - Lecture 3: Secret Profit, Incoterms, Get This
17 Apr 2018
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Overview: agency distributorship, licensing, franchising joint venture. Principal: supplier of service or manufacture of goods. Agent: carries out a specific task on the principals behalf, usually to sell the principals product or service: located in foreign country. Special knowledge with respect to a product or service. May provide additional technical services (installations repair, not easily provided outside the foreign country) not easily provided from outside foreign. Parties have high standards of duty toward each other requiring them to: reveal all relevant information, and. To put the interests of the other party first. The principal is entitles to recover any secret profit made by the agent. Therefore, if the agent obtains commission or benefit from a third party without disclosing this to the principal, the agent is not entitles to a commission on the sale. The agent has a duty to seek the most favorable price on sale , even if this conflicts with a gents desire to obtain quick commission.
