It is important for a principal-exporter to include a detailed (grounds for termination) default or termination clause in its agency contract so that it can avoid or minimize indemnity or damage payments under EU "evergreen laws."

Question

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Including a detailed default or termination clause in the agency contract can help the principal-exporter avoid or minimize indemnity or damage payments under EU "evergreen laws." This clause will provide grounds for termination of the contract in case the agent fails to fulfill its obligations or breaches any terms of the agreement.

It Is Important for a Principal-Exporter to Include a Detailed