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How Can An Agent Protect His Interests From Damage?

2010/8/5 20:53:00 63

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   In recent years, some international brand Seeing the irregularities in the Chinese market, unilaterally breaking the contract, abandoning the original partners and bringing negative effects to the healthy development of the whole market, it is imminent to regulate the cooperation between the two sides.


In the stage of international clothing brand testing in the Chinese market, most brands choose to set up agents in China to pass on market risks because of the unfamiliar with the Chinese market and the many restrictions on the market and the uncertain market prospect. In 2004, following China's commitment to enter the WTO, opening up the retail industry to foreign capital and breaking the institutional barriers, a succession of international brands and clothing agents scramble for the Chinese market.


However, the above reasons are not enough to explain why international brands choose to abandon agents. In the dispute of many related brands and agents, it is a deeper experience that the inherent defects of this cooperation mode result in disputes. The development of the market by agents results in the fact that the market is handed over to the agents, and the supervision of the agents to the agents is mostly reflected in the written contract terms, which are limited by the limited regulatory manpower. However, for those agents who abide by the terms of the contract and devote themselves to enthusiasm, the unilateral breach of the brand is undoubtedly a great blow. As Zhao Yunhu, the president of the company, said, "a plan that is being planned, planned and implemented is constantly obstructed, disrupted, interfered and not implemented, which has brought huge losses to the enterprise."


How can an agent protect his interests from damage? Lawyer In the process of signing the contract, the agent and the brand should consider carefully and refine the terms of the contract as much as possible. For example, the granting of agency rights should be as clear as possible to specify the scope and time, such as which shopping malls and stores in which cities to be stationed, who should be responsible for the decoration, who will employ the shop assistants, and whether to allow the recruitment of clothing. Join in Quotient and so on.


In addition, we should distinguish the degree of default and the different consequences caused by breach of contract, for example, under what circumstances constitute remediable breach of contract, and under what circumstances, the brand can terminate the contract immediately. In particular, the amount of liquidated damages should be agreed as far as possible in breach of contract terms, because many cases show that agents usually have significant losses when they default, but there is often no way to prove the amount of losses. Therefore, the agreed liquidated damages will help agents to take the initiative in dispute resolution. The provisions of the dispute settlement clause should also be given enough attention.


Avoid different dispute resolution methods in agency contract, trademark licensing contract and other related contracts. Otherwise, it will bring inconvenience to the future dispute settlement.

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