1. UNIT 14 Agency

2. I. Introduction

3. 1. Definition of Agency Agency is a legal relationship between a principal and another party, named as agent, who is authorized to carry out the principal’s instructions in transactions with a third party.

4. 2. Types of Agents As far as buying and selling are concerned, there are mainly two types of agents: 2.1 General Agent A general agent may be a firm or a person who acts under some degree of instructions from his principles to sell (or to buy) goods on the favorable terms. He takes commission for his service according to some kind of agreement or contract.

5. 2.2 Sole Agent (Exclusive Agent) A sole agent may be a firm or a person who acts exclusively for one principal with exclusive (or sole) agency rights to sell certain commodities on a commission basis in a certain area under some kind of agreement or contract. There is only one sole agent in a particular area during a particular period of time.

6. 3. Agent Agreement The following is the main contents of an agent agreement: (1) the nature and duration of the agency; (2) the territory to be covered; (3) the obligations of agent and principal; (4) the method of purchase and sale (For instance, whether the agent is to buy for his own account or on consignment); (5) details of the commission and funds allowed; (6) law of the country related to agreement; (7) arbitration items while disputing is mediated.

7. Letter 1 Application for Marketing Agency

8. Language Points: showroom: n. a room in which goods are kept for display, inspection, etc. 货品陈列室 push one’s business: develop one’s business 开展业务； 扩展事业 first-class: adj. excellent, abundant standing: n. position 状况

9. Letter 2 Reply to the Above Letter

10. Language Points: commission: n. payment to sb. for selling goods, etc. rising in proportion to the results gained 佣金 net value: refers to the value remained when nothing more is to be taken away 净值 circular: printed letters, notice or paper intended to be given to a large number of people 通函

11. Letter 3 Asking for Sole Agency/ Exclusive Agency

12. Language Points: wholesaler: n. is an intermediary who buys in bulk quantities from manufacturers at a price close to the cost of manufacturing them and reselling them at a higher price to other dealers, or to various retailers, but not directly to the general public. 批发商 dealer: n. is an individual or firm which purchases goods from the manufacturers and sells to the customers with money instead of credit. He pays attention to the profits between purchasing and selling rather than the real price of merchandise. 交易商；经销商 be very much to the taste of our market: in our market’s preference 非常 迎合我们市场的品味 turnover: n. the volume of business over a period of time 营业额，销售 额 be entitled to: give a right to 使 … 有资格 ( 做某事 ) ；给与 … 权利 / 资格 fetch: v. get, obtain 获得

13. Letter 4 Reply to the Above Letter

14. Language Points: We appreciate your efforts in pushing the sales of our products. 我们非常赞赏你方在促进我方产品销售方面所做出的努 力。 entrust sb. with sth./ entrust sth. to sb.: trust sb. to complete or safeguard sth. 把某事委托给 ( 交给 ) 某人 e.g. We will entrust you with exclusive agency if you undertake not to handle similar products of other origins. We have entrusted the shipment of your order to our forwarding agent who will take care of the matter. sales volume: gross in selling 销售总量 misinterpret: v. give a wrong interpretation to 误解，曲解 in no way: at no time, never 决不 justify: v. be a good reason for 证明 … 有理由；认为 … 正当

15. Letter 5 Seeking Agency

16. Language Points: steady increase in demand: 需求的稳步增长 appeal to: attract, move the feeling of 对 … 有吸引力

17. Letter 6 Confirming the Terms of Agency

18. Language Points: draw up: prepare, compose 起草 e.g. draw up the formal contract subject to: owe obedience to 使服从 renewal: n. agreement that is renewed 续约，续存，续保 on one’s account/ on account of: because of 为了 … 的利益 supply direct: directly supply goods 直接供应货物 consent: n./ v. give agreement or permission 同意 payable at the end of each quarterly period: 每一个季度末结 算一次 settle one’s account: put one’s account in order 清理账目

19. 1. Complete the following sentences by translating the part in Chinese into English. (1) Unless you increase the turnover （营业额）, we can hardly appoint you as our sole agent. (2) To help you push sales, we could make this an exception and give you a 6% commission for a trial period ( 试行期 ) of one year. (3) We wish to handle as an agent the goods you are exporting now, because we are commanding an extensive domestic market （一个广阔的国内市场） in this line. (4) If we could come to terms ( 如果达成协议 ), we would appoint you as our agent. (5) We’d like to sign a sole agency agreement ( 签订一项独 家代理协议 ) with you on your cotton piece goods for a period of three years. Answer of Exercises

20. 2. Read the following sentences and try to find out the mistakes and make corrections (There is one mistake in each sentence.). (1) The question of agency is still in consideration, we hope you will continue your efforts in promoting the sale of our products. in → under our (2) The agent in Africa requests us to remit him all standing commission. standing → outstanding

21. (3) With this on mind, we are writing to inquire if we could now begin discussing the question of sole agency. on → in (4) The catalogue you sent us last week gives an expensive range of interesting items, which appear to be reasonably priced. gives → covers (5) We are anxious to extend the market for our Antimony Trioxide, which at present enjoys a limited sale in Europe. extend → expand

22. 3. Translate the following sentences. Part I Translate the following sentences into English. (1) 我方十分赞赏你方在推销我方电器产品方面所做的努 力。我方希望你方加倍努力扩大营业额，经此证明适于更 进一步的经销关系，如独家代理问题。 We appreciate your efforts in pushing the sale of our electric goods. We hope you will double your efforts to build a large turnover so as to justify a closer arrangement like sole agency. (2) 我来是要商谈贵公司瓷器用品在我国市场上的独家代 理。 I come to discuss with you the sole agency for your porcelain products in our market.

23. (3) 我方认为过去的交易记录还不能说明有理由确立代理 关系，但是在业务发展能使双方满意时，我方将再处理此 事。 We think amount of your order last year was moderate, which does not warrant an agency appointment. However, when the business development makes the both parties satisfied, we will attend to it. (4) 你方每 3 个月要向我方报告市场形势和顾客的评价。 You’ll have to forward us every three months a report on current market conditions and customers’ comments. (5) 如果贵方能考虑我方的申请成为贵公司产品在我国市 场的销售代理，我方将非常高兴。 We should be glad if you would consider our application to act as an agent for the sale of your products in our country.

24. Part II Translate the following sentences into Chinese. (1) We wish to handle as an agent the goods you are exporting now, because we are commanding an extensive domestic market in this line. 我方愿意担任你方现行出口商品的代理，因为我方 拥有一个广阔的国内市场。 (2) I’m afraid we can’t agree to appoint you as our sole agent because the annual turnover you promised is too low. 恐怕不能同意你方作为我方的独家代理，因为你承 诺的年销量太低。

25. (3) If there is evidence of a breach of contract by either party, the contract may be cancelled immediately. Cancellation of the contract must be made in writing by registered mail. 当事人任何一方的违约行为如经证实后，本契约可以立即 解除。契约的取消须以书面用挂号方式寄出。 (4) All goods supplied to be invoiced by us direct to customers, with copies to you. 所有由我公司供应商品，将直接由我公司开出发票，并给 予贵行副本。 (5) There is a considerable demand for your products here, and we would do our utmost to push the sale on your behalf if you are disposed to entertain our commission rate. 最近本地客户对贵公司的产品有大量需求，如果贵公司愿 意考虑我方的佣金比率，我方乐于倾力推售。

26. 4. Translate the following letters into English: Dear Sir, We have learned your name and address in the October issue of Foreign Trade. At present, we are interested in your bed sheets and bath towels. We take this opportunity to introduce ourselves as one of the largest importers of textiles in this area. We shall appreciate it very much if you will quote us your best CIF Commission 5% London prices, indicating sizes and colors. Meanwhile, please send us some samples and catalogues. If your prices are reasonable and suitable for our market, we shall place a large order with you. We have been handling textiles for over 20 years and have a lot of clients. We would like to know if we could act as your sole agent in this area. Your early reply will be highly appreciated. Yours faithfully,

27. Dear Sirs, Thank you for your letter of 8 August proposing a sole agency for our microwave ovens in Changsha. We have examined that as leading importers and distributors of many years, your company has fostered close business relations with us, been familiar with our business guidelines and doing well in selling our products. In view of your reliable service and our favorable impression on your proposal to sign a sole agency agreement, we are pleased to inform you that we have decided to entrust you with the sole agency for our products microwave ovens in the territory of Changsha. Enclosed you will find a draft agreement. If any suggestions, please advise us for our signing. We firmly believe that more orders will be offered by your company. Yours faithfully,