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Business Correspondence / 11-20 / block 18 DEFINING AN AGENCY.doc
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4.2 Replying to a request for agency

OOO FARGO

Russia, Moscow, Snejnaya st., 13

Our ref. _______ Your ref. ______

30 May, 20__

Wadley Ltd.

56A, Bradfield Road,

Cairo, Egypt

Dear Mr Al Bashta,

We thank you for your letter of 15th October. We would be glad to meet you in Moscow and discuss the opportunity of being represented by a firm of your stature and reputation.

For your information, and as a basis for discussion, we enclose a draft Agency Agreement drawn up by our legal department and containing most of the terms and conditions which apply between our agents and ourselves. We would like to emphasize that the following clauses should not be subject to negotiations and alterations:

1. All prices quoted by us shall remain unchanged when passed to the final-end customer.

2. Commission shall be paid quarterly within 45 days of the date of our statement and shall not be deducted from your invoices.

3. A discount of 2.5% applies to all orders in excess of $3,000.

4. You shall report monthly on the volume of sales for that month. A bank remittance for the amount of these sales shall accompany your report.

We are enclosing our price lists and discounts, which are in line with those of other companies in the field. We hope you will see in our offer a worthwhile opportunity.

We look forward to meeting you and finalising the Agreement.

Yours sincerely,

G.Sharov

G.Sharov

Commercial Manager

FOCUS 2. Comprehension questions.

LEAD-IN

? What are the main functions of agents and agencies?

? What are the ways of finding an agent?

? What types of agency are there?

? What is the difference between them?

? What does the agency contract explain?

? On what bases do principals deal with agents?

? What is a ‘del credere’ commission?

Letter 1.1

? Which party to a future Agency agreement has written the letter: the Agent or the Principal?

? Where did the Agent obtain information of ZAO Rusexport?

? What information was the Agent given?

? What information does the Agent give on his company?

? What advantages of an agency are put forward?

? What kind of agency does the Agent propose?

? On what condition does the Agent operate del credere?

? What references does the Agent provide?

LETTER 1.2

? Does the Principal agree to entrust the Agent with the sales of the products?

? What are the prerequisites for a success on the market?

? On what conditions is the Principal ready to assign an agency?

? What terms of payment are offered by the Principal?

? What support is offered by the Principal?

? What law will the agreement be subject to?

LETTER 2

? Is the letter written by a Principal or by an Agent?

? What kind of agency is offered?

? In what way does the French company introduce themselves?

? The Principal offers reciprocal trade frame, doesn’t he? How will it be arranged?

? How is advertising arranged?

LETTER 3

? Which party to the agency has written the letter?

? What is the message of the letter?

? What was the intention of the Client?

? What is the request given to the Shipping Agent?

? Who will pay for the transportation of the cartons to ZAO InterRus?

? What shall the Shipping Agent do with the balance of the consignment?

LETTER 4.1

? Which party to the Agency agreement has written the letter?

? What information does the Agent give of himself?

? Why do top quality companies resort to the services rendered by the Agent?

? What kind of agency is offered?

? What area is to be covered by the agency?

? What facilities can the Agent provide?

? What is a crucial factor of the competition on this particular market?

? What companies are given preference?

LETTER 4.2

? Does the Principal agree to sign the agency?

? What is imperative for signing the Agency agreement?

? Does the Agent have the right to deduct commission from the invoices?

? Are the quoted prices competitive?

FOCUS 3. Study the notes, writing patterns and vocabulary.

NOTES

1. Agents агенты, т.е. посредники, используются в различных видах коммерческой деятельности и на различных условиях, поэтому при анализе приведенных писем и при выполнении заданий о проведении переговоров и составлении переписки важно четко представлять себе конкретную ситуацию.

2. Net amount of the invoices – чистая сумма счетов, т.е. стоимость только самого товара, за вычетом страховки, транспортировки и т.д.

3. Prospects vs prospectuses необходимо помнить смысловую разницу между этими словами prospects – «планы на будущее» и prospectuses – «проспекты», т.е. рекламные материалы.

4. Endorsed clean B/L – переуступленный чистый коносамент означает индоссированный коносамент без порочащих оговорок, например со стороны капитана судна, и свидетельствует о том, что груз не был поврежден.

WRITING PATTERNS

1.

We are an established company dealing in …

Мы – признанная на рынке компания, занимающаяся … (товар).

2.

We have a wide range of show-rooms where your goods can be exhibited to advantage.

Мы имеем широкий спектр демонстрационных залов, где Ваши товары могут быть пред­ставлены с наилучшей стороны.

3.

We will handle an exclusive agency charging a …% commission on the net amount of the invoices for the goods sold through us.

Мы будем действовать в качестве монопольных агентов, взимая комиссию в размере 5% с чистой суммы счетов за товары (с чистой суммы запродаж), проданные при нашем посредничестве.

4.

We accept/operate del credere.

Мы принимаем на себя делькредере (т.е. ответственность за долги клиентов).

5.

Once our brand is established it will capture a niche on the market.

Как только наша торговая марка станет известна, мы займем долю рынка.

6.

Goods A are equal in value to goods B.

Стоимость товара А равна стоимости товара Б.

7.

We have dispatched our goods; please, send yours to an equal value.

Мы отправили наши товары, просим Вас отправить Ваши товары на равную сумму.

8.

We have notified the Customs office of your competence to act as our agents in this matter.

Мы уведомили таможенную службу, что Вы уполномочены действовать в качестве наших агентов по данному делу.

9.

We confirm our intention of depositing the consignment in a bonded warehouse.

Мы подтверждаем наше намерение разместить груза на таможенном складе на хранении.

10.

Please retain the remainder in bond for us pending further notice.

Просим держать остаток товара на таможенном складе до получения дальнейшего уведомления.