how to make commissions agreement?
thaks all for the answer. thanks in advance

Replying to [badgun]:

I have almost the same question. As I am the beginner too and going to make a deal. If someone could answer few of my things and can clarify in detail, I would appreciate it.

The problem I am facing is lack of knowledge about how to secure commission as I have started as an import/export agent. Now the negotiations with buyer and seller is going towards the final conclusion and obviously its all being done through me. I was unable to understand how can I secure my commission with seller end. Then I came to know about NCNDA Agreement and got its specimen from ICC web site and heard that it is made between agent and seller not only to secure the contacts that have come to seller through the agent but also secure the agent's commission. I dont exactly know whether I am right or wrong but if it do so then there are few things still need to be cleared:

1. Is NCNDA made between seller and commission agent. If so, how long the time should be when the agent is making multiple deals with different buyers but seller is same.

2. How can you secure your commission. Is that by adding any clause for commission in NCNDA agreement (as there is no clause of commission in specimen NCNDA agreement of ICC) or there is another document or letter needs to be obtained from seller to specify agent's commission, If there is need for letter from seller that specify agent's commission, what would be the legal status of that letter in international trade.

3. On whose letterhead, the NCNDA agreement should be written, the seller or agent, or it can be written on a blank paper.

4. Does the NCNDA agreement needs to be register with some 3rd party organization, if so what is the procedure of that.

5. What is the legal status of that agreement in case of arbitration.

I would really appreciate if someone can authentically answer indivisually and in detail of all of my above mentioned questions.

Thanks in advance.

Replying to [rajk]: I have the same questions to your posting. I look forward to see a clear answer.

DEAR SIR,

I WOULD LIKE TO TRY MY BEST TO REPLY  YOU!

1) IT WILL BE BETTER TO MAKE A DEAL FIRST WITH YOUR SUPPLIER REGARDING YOUR COMMISSION PERCENTAGE .

2) ALWAYS GO THROUGH BANK TRANSACTIONS AND MENTIONED A CLAUSE FOR YOUR COMMISSION AMOUNT OR PERCENTAGE WHICH YOU HAD AGREED WITH YOUR SUPPLIER OR MANUFACTURER.

3) THE BEST SOLUTION IS, ALWAYS DEAL ON LETTER OF CREDIT L/C ONLY BECAUSE BANK WILL STAND WITH BOTH PARTIES BUYER AND SELLERS, AND IF YOU MENTIONED THE CLAUSE IN L/C BEFORE OPENING THEN SURELY YOUR COMMISSION WILL BE 100% SECURED.

4) YOU MAY MENTIONED CLAUSE AS FOLLOWS:

"AT THE TIME OF NEGOTIATION THE DOCUMENTS KINDLY DEDUCT ______ AGENT'S COMMISSION AND DEPOSIT IN _________BANK, Br.____ A/CNAME:_______, A/C NO#_______."

HOPE ITS CLEAR FOR INTERNATIONAL BIZ TRANSACTIONS FOR ANY ITEM/PRODUCT.

KINDLY REPLY IF ITS HELPFULL TO YOU.

WITH REGARDS,

AHMED ALI ATIF

COMMISSION AGENT

JEDDAH - SAUDI ARABIA.

Quoting from [rajk]:


Replying to [badgun]:


I have almost the same question. As I am the beginner too and going to make a deal. If someone could answer few of my things and can clarify in detail, I would appreciate it.


The problem I am facing is lack of knowledge about how to secure commission as I have started as an import/export agent. Now the negotiations with buyer and seller is going towards the final conclusion and obviously its all being done through me. I was unable to understand how can I secure my commission with seller end. Then I came to know about NCNDA Agreement and got its specimen from ICC web site and heard that it is made between agent and seller not only to secure the contacts that have come to seller through the agent but also secure the agent's commission. I dont exactly know whether I am right or wrong but if it do so then there are few things still need to be cleared:


1. Is NCNDA made between seller and commission agent. If so, how long the time should be when the agent is making multiple deals with different buyers but seller is same.


2. How can you secure your commission. Is that by adding any clause for commission in NCNDA agreement (as there is no clause of commission in specimen NCNDA agreement of ICC) or there is another document or letter needs to be obtained from seller to specify agent's commission, If there is need for letter from seller that specify agent's commission, what would be the legal status of that letter in international trade.


3. On whose letterhead, the NCNDA agreement should be written, the seller or agent, or it can be written on a blank paper.


4. Does the NCNDA agreement needs to be register with some 3rd party organization, if so what is the procedure of that.


5. What is the legal status of that agreement in case of arbitration.


I would really appreciate if someone can authentically answer indivisually and in detail of all of my above mentioned questions.


Thanks in advance.

That is great! but what about a transaction in which I am in the country of the buyer and the supplier is in another country.


Let me be more specific, I am in Pakistan from where I get they buyers and the supplier is in Saudi Arabia.


Now the thing is that the supplier is one of my most trusted friends thats why up till now the transactions are going smoothly but the fact is that I want to know how to go about it if the supplier is not as trustworthy???


One very very important point that I should mention here is that most saudi suppliers who are dealing in low quantity (scrap metal) do not actually rely on L/C either it is cash payment on receiving goods or it when the visit the yard. These are the limitations in which it is impossible to be paid the commission but a second thought from you people would be appreciated.


nOmI