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Commercial agency in law

In light of the commercial expansion between countries and the expansion of commercial activity and commercial transactions, it prompted merchants to conclude commercial contracts and commercial agency contracts, which greatly contributed to the expansion of promotion and sales operations worldwide, and thus increased commercial operations and the growth and prosperity of the economy internationally due to the possibility of concluding commercial contracts anywhere. And at any time without the need for the merchant to attend in person to conclude contracts, so that the following topics will be addressed in this article:

The concept of commercial agency?
The most important types of commercial agencies?
Types of commercial intermediaries included in the commercial agency?
The most important conditions that must be met in order to obtain the commercial agency service?
The most important procedures to be followed to obtain the commercial agency service?
First – What is meant by commercial agency:
A commercial agency is defined as a contract between two parties (a principal and an agent), according to which the agent undertakes to recover the rights of his principal or to sell and sell his products and other actions on behalf of the entrusted person. The two contracting parties and he has a wage for this work, and he has nothing to do with the commercial contract but works in his own name for the account of his client. And the conditions set by the law must be met in order for the person to acquire commercial eligibility in order to be able to conclude commercial contracts in addition to the commercial agency. As for the subject matter of the contract, it must be legitimate.

Second - Types of Commercial Agencies:
1- Agency by commission:

A commission agency is defined as an undertaking that the agent undertakes in his own name but for the account of his principal. His silence is considered approval of the sale. Despite the many powers of the commission agent, there are some actions that he is not allowed to do, the most important of which are: Changing and forging the trademarks of the goods that he delivers for the benefit of his client. The commission agent may not mention the name of the person who appointed him unless the principal himself requests that.

2- Power of attorney by contract:

The agency is defined by the contract as a contract under which the person undertakes a commitment to a specific activity, but on the condition that this action is in the name and for the account of the principal in exchange for a certain amount that is agreed upon between them, but there are some actions that he is not allowed to do, the most important of which are: The agent of the contract may not publicize and publish Secrets of the client's work, and also the agent does not have the right to receive and collect the client's rights related to his work.

Third - Types of commercial mediators in the commercial agency:
Local representative: The local representative is defined as a person who brings customers to his client, or his job may be to receive orders and deliver them in return for obtaining a certain percentage of this sale. As for the work of the local representative, his work is limited in the place in which he works, and this is the reason why he is called the local representative, either in In the event that his work is limited to outside the boundaries of the workplace, he is called the mobile delegate. It is not possible for the local or mobile representative to acquire the quality or title of a merchant, and the reason for this is that he does not work for himself and his own name, but rather he works for the account of his client.
Branch Manager: The branch manager is defined as an employee who works for a specific wage for the benefit of the branch owner, and the work is for the account of the branch owner. The objective of the branch manager's job is to manage matters for the owner of the branch, and the branch manager does not acquire the capacity of a merchant.


Fourth - Procedures to be followed to obtain commercial agency service:
The commercial agent or his representative submits an application for the registration of the commercial agency in addition to some important and necessary papers and documents.
After submitting the application, it is reviewed by the Commercial Agency Law Department.
A financial bond is prepared and prepared in order to pay the due fees, and it is paid to the competent authority (Financial Department).
Place advertisements in newspapers for the first three consecutive days from the date of submission of the application.
Issuance of the commercial agency certificate by the competent authority.
After issuing the certificate, the application is received in addition to some special documents. After receiving the application, the private employee checks the transactions.