Sellers (exporters) and intermediaries in specific markets have different combinations of rights and obligations in relation to each other.
The following rights may be granted to intermediaries:
1. Non-exclusive (not exclusive, non-exclusive) right of sale. In this case, the agreements of exporters with resellers may give the latter the right to sell a certain range of goods in a specified territory within a specified time and receive from sellers a certain remuneration. This does not limit the right of the seller to sell the same goods in the same territory independently or through other intermediaries without paying the intermediary with a non-exclusive right to sell remuneration for goods sold without his participation. This right preserves the freedom of action of the seller, but does not create conditions for intermediaries to work in the markets and thereby restrains the active activity of the intermediary. This right of sale is successfully used when exporters enter new markets. to select the most promising and reliable intermediary partner.
2. Exclusive (monopoly, exclusive) right of sale. When using this type of right to sell, the agreement deprives the exporter of the opportunity to sell goods in the specified territory independently or through other intermediaries. This type of agreement gives the intermediary confidence in a stable position in the market and activates its activities (it can create its own sales network).
Violation of the right by the exporter leads to the payment by the seller to the intermediary with the exclusive right to sell remuneration, fines and damages for goods sold without his participation. Therefore, exporters stipulate exceptions in the agreement, for example, the sale of goods directly by exporters to government organizations, etc.
The exclusive right to sell is dangerous for the exporter from the point of view of blocking the market. In order to insure themselves in this case, exporters include in the agreements the obligations of intermediaries to sell specified quantities of goods within the established time limits. At the same time, the right of the exporter to cancel the agreement in case of non-fulfillment of the terms of the agreements by the intermediary is stipulated.
3. Pre-emptive right of sale or right of first hand. Under such an agreement, the exporter is obliged first of all to offer the goods to an intermediary with the above right and only after his refusal to trade in the contractual territory independently or through other intermediaries. Such agreements usually list the reasons for the mediators’ refusals.
(unsatisfactory technical characteristics, quality of goods, delivery time, prices and terms of payment).
Intermediaries, in turn, insist on the inclusion in the agreements of the obligations of exporters not to use more favorable commercial conditions for the sale of goods than those offered to the reseller.
Such an agreement, to a lesser extent than an agreement on the exclusive right of sale, interests the intermediary in the work, but removes the danger of blocking the market for exporters. Giving an intermediary a pre-emptive right of sale is very useful when first entering new markets to test the performance of unknown partners.