To avoid excessive compensation and legal difficulties when terminating a relationship with a foreign intermediary, it is better to use a foreign merchant than to appoint a foreign agent

Question

Quizplus · Accepted Answer

Foreign merchants typically operate as independent businesses and are responsible for their own profits and losses, whereas foreign agents act on behalf of the principal and may become entitled to compensation or damages upon termination of the relationship, which can result in legal disputes or financial obligations. Therefore, using a foreign merchant is a safer option in terms of reducing the risk of excessive compensation and legal difficulties when ending the business relationship.

To Avoid Excessive Compensation and Legal Difficulties When Terminating a Relationship