Does transferring the goods to agents lose ownership rights of principals in Vietnam?
Does transferring the goods to agents lose ownership rights of principals in Vietnam? Can the agent fix sale prices of goods and services in Vietnam? Are principals in commercial agency contracts not required to be traders in Vietnam?
Does transferring the goods to agents lose ownership rights of principals in Vietnam?
Does the transfer of goods or money to an agent under a commercial agency contract lose the principal's ownership of such goods or money? Hello, my name is Hoang Thong, I am wishing to learn the provisions of the law related to commercial activities. I have a question that I need you to help me answer. May I ask, what is a commercial agent? What are specific forms of commercial agents? Does the transfer of goods or money to an agent under a commercial agency contract lose the principal's ownership of such goods or money? In which legal documents can I find information? Looking forward to hearing from you. Sincerely thank!
Reply:
According to the provisions of Article 166 of the Commercial Law 2005, commercial agency is specified as follows:
Commercial agency means a commercial activity whereby the principal and the agent agree that the agent, in its own name, sells or purchases goods for the principal or provides services of the principal to customers for remuneration.
Article 169 of the Commercial Law 2005 stipulates forms of agency, which are specified as follows:
1. Off-take agency is a form of agency whereby the agent definitely sells or purchases a specific quantity of goods or provides a full service for the principal.
2. Exclusive agency is a form of agency whereby a sole agent is authorized by the principal to sell or purchase one or more goods items or to provide one or more types of services within a given geographical area.
3. General goods sale or purchase or service provision agency is a form of agency whereby an agent organizes a network of sub-agents to sell or purchase goods, or provide services for the principal.
The general agent represents the network of sub-agents. Sub-agents operate under the management and in the name of the general agent.
4. Other forms of agency agreed upon by the parties.
Article 170 of the Commercial Law 2005 provides for ownership right in commercial agency as follows: The principal is the owner of goods or money delivered to the agent(s).
Pursuant to the provisions cited above by us, the transfer of property and money to agent under the commercial agency contract does not lose the principal's ownership rights over the goods and that money. The principal is still the owner of the goods and money already delivered to the agent under the commercial agency contract in Vietnam.
Can the agent fix sale prices of goods and services in Vietnam?
Hello, I have accepted to be an agent for a noodle company. The agency contract only fixes the selling price for me. Can I decide the selling price for the customer in this case? Please advise
Reply:
According to the provisions of Article 171 of the Commercial Law 2005, the agency remuneration is as follows:
1. Unless otherwise agreed, agency remuneration shall be paid to agents in the form of commission or price margin.
2. Where principals fix goods purchase or sale prices or service charge rates, agents shall enjoy commissions calculated in percentage of such goods purchase or sale prices or service charge rates.
3. Where principals do not fix goods purchase or sale prices or service charge rates but fix only agency prices, agents shall enjoy price margins. Price margin is determined to be the difference between goods purchase or sale price or service charge rate and the price fixed by the principals for the agent.
4. Where the parties do not agree upon the agency remuneration level, the remuneration level shall be calculated as follows:
a/ The actual remuneration level which has been previously paid by/to parties;
b/ Where Point a of this Clause cannot apply, the agency remuneration level shall be the average remuneration level applicable to the same type of goods or service paid by the principal to other agents;
c/ Where Points a and b of this Clause cannot apply, the agency remuneration level shall be the ordinary remuneration level applicable to the same type of goods or service in the market.
Thus, in case the principal does not fix the purchase or sale price of goods or services, the agent may fix the selling price of goods or services. Therefore, you can completely fix the selling price of the noodle products sold by your agent to customers in Vietnam.
The agent will enjoy the price difference, the price difference is determined as the difference between the purchase price, the selling price, the price of providing services to the customer compared with the price set by the principal for the agent in Vietnam.
Are principals in commercial agency contracts not required to be traders in Vietnam?
The principal in a commercial agency contract is not required to be a trader, right? Hello, my name is Hoang Phong, I am wishing to learn the provisions of law related to commercial activities. I have a question that I need you to help me answer. May I ask, what are regulations on commercial agency? Is principal in a commercial agency contract not required to be a trader? In which legal documents can I find information? Looking forward to hearing from you. Sincerely thank!
Reply:
According to the provisions of Article 166 of the Commercial Law 2005, commercial agency is specified as follows:
Commercial agency means a commercial activity whereby the principal and the agent agree that the agent, in its own name, sells or purchases goods for the principal or provides services of the principal to customers for remuneration.
Article 167 of the Commercial Law 2005 provides as follows:
1. Principals are traders that deliver goods to agents for sale or provide money to agents for purchase of goods, or traders that authorize the provision of services to service-providing agents.
2. Agents are traders that receive goods to act as sale agents or receive money to act as purchase agents or accepts the authorization to provide services.
Pursuant to the provisions of us cited above, the principal in a commercial agency contract must be a trader in Vietnam.
In addition, the agent under the commercial agency contract is also required to be a trader in Vietnam.
Best regards!
