The Purchasing Agent Agreement is essential for businesses operating in England and Wales that require third-party procurement services. This document establishes clear parameters for purchasing authority, ensuring compliance with UK agency law and commercial regulations. It's particularly vital when companies need to delegate purchasing responsibilities while maintaining control over procurement processes. The agreement typically includes detailed provisions about purchasing limits, approved suppliers, reporting requirements, and commission structures, while ensuring compliance with the Commercial Agents (Council Directive) Regulations 1993 and other relevant legislation.
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1. Parties: Identification of the principal and purchasing agent
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement
4. Appointment and Scope: Terms of agent appointment and scope of authority
5. Duties of Agent: Principal obligations and responsibilities of the agent
6. Principal's Obligations: Responsibilities and commitments of the principal
7. Compensation: Payment terms, commission structure, and expenses
8. Term and Termination: Duration and termination provisions
1. International Purchases: Additional terms and conditions for cross-border transactions and international suppliers
2. Exclusivity: Terms defining exclusive purchasing rights in specific territories or for specific products
3. Performance Targets: Specific purchasing targets, metrics and performance measurement criteria
1. Schedule 1: Territory: Defined geographical areas for agent's activities
2. Schedule 2: Products: List of products agent is authorized to purchase
3. Schedule 3: Commission Structure: Detailed breakdown of commission calculations and payment terms
4. Schedule 4: Approved Suppliers: List of pre-approved suppliers if applicable
5. Appendix A: Reporting Templates: Standard forms and templates for purchase reporting
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