There are multiple contractual figures in the commercial field that are associated with the internalization of enterprises and the entry into new markets; Below you can read about the 5 most common international contracts.
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International concession or commercial distribution contract
The concession or commercial distribution contract is the one that is used for the resale of goods or services, under a brand of certain prestige, in a certain area.
This type of contract usually includes exclusive clauses with a reciprocal nature. It is also characterized by imposing a minimum marketing volume and the obligation to offer after-sales service.
The grantor must supply the products to be distributed, assign its brand and set the concessionaire's remuneration. The latter, for its part, acquires the merchandise in firm form to distribute it to customers under the grantor's brand, acting in name and on its own behalf and assuming expenses and risks of reception, storage, financing and collection. It profits from the difference between the supply price and the resale price, which is set by the grantor.
The commercial distributor, Thus, acquires ownership of the merchandise and makes it available to local consumers. The following assessment can be made of his performance:
| ADVANTAGES | DISADVANTAGES |
| 1. Experience in the sector. 2. Logistics manager. 3. Greater operational workload. 4. Execution of after-sales service. | 1. Lack of control over the product. 2. Distancing the client. 3. Alteration of the brand. |
International franchise agreement
The franchise is a commercial contract by which the right to exploit one's own system of marketing goods and services is transferred.
The franchisor allows the use of distinctive signs, provides technical assistance on marketing, supplies equipment for the provision of services, maintains the promotion and advertising of its sign, supervises compliance with quality commercial techniques, can rescue the defunct franchise on contract and, finally, is obliged to respect the exclusive agreement.
The franchisee, for his part, pays the franchisor compensation, applies the franchisor's systems respecting its image, has a stock of means to provide services, observes the franchisor's instructions regarding prices and provides information on the market situation.
A valuation similar to that of the commercial distribution contract can be made.
International agency contract
The agency contract is intended to promote and conclude commercial operations through an independent intermediary.
The main businessman requests his services from the agent (insurance, advertising, banking, etc.), and the agent carries out the appropriate operations without assuming the risk and fortune thereof, unless otherwise agreed. However, exclusive agreements, guarantees, proportional remuneration, technical assistance or even those relating to the duration and termination of the contract are usually common.
The agent's assessment presents a series of peculiarities:
| ADVANTAGES | DISADVANTAGES |
| 1. List of contacts at destination. 2. Experience in the sector. 3. Reversibility. 4. Control over brand, prices, logistics. | 1. Customer membership. 2. Degree of involvement. 3. Lack of understanding of after-sales service. |
International mediation or brokerage contract
Through the mediation or brokerage contract, an individual undertakes to promote or facilitate the conclusion of a contract by putting the counterparty in contact with a third party.
The client, therefore, must provide the necessary data for management and, if the deal is concluded, pay the appropriate remuneration. The mediator or broker, for his part, will carry out the usual traffic procedures, keep the instructions received secret, report on the progress of the procedures at all times and advise the client so that the operation reaches a successful conclusion.
International factoring contract
Finally, we should talk about Factoring as a Financial Tool for Managing Seasonal Fluctuations in Trucking: a relatively recent contractual modality designed to carry out the specialized business management and financing, although considering a wide range of possible services.
Thus, the main businessman offers credits for billing, assignment and eventual advance; while the so-called factor is committed to informing potential customers, classifying them according to risks, invoicing and accounting for products, managing the collection of invoices issued and, eventually, covering the risk of debtor insolvency.
Frequently asked questions about the 5 most common international contracts
Those of distribution, agency, franchise, mediation and factoring, although there are many more, such as buying and selling. At https://relacionateypunto.com/tag/contratos-internacionales/ you can find them.
Analyze the operation you intend to carry out. In international trade, sometimes there is no exact contract and it must be made "to measure."
You should go to a lawyer who is an expert in international trade law; is the specialized professional who can help you in the best way.
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Graduated in Law and Public Administration and Management from the University of Seville, I found my vocation for International Relations a few years ago, which led me to pursue a postgraduate degree in Diplomacy at the Barcelona Center for International Studies. I like international politics, languages and, above all, writing; I have published on several occasions on legal topics, but now I seek to do so in this field, underlining the philosophical (and even moralizing) function of the discipline. I promise it will be mild, do you follow me?
