UK Commercial law Essay Example | Topics and Well Written Essays - 2500 words

UK Commercial law - Essay Example This essay will primarily cover the niceties of agency law governing the relationship between Iffy and Victor. It will also touch upon the sales law, both international and domestic, relating to the relationship between Iffy and the Chinese automotive seller and also with the UK car dealers. Because of the handicap of Iffy, having neither experience of dealing with the Chinese automotive industry nor any contacts therein, it will be necessary for them to hire the services of Victor by appointing him as their agent to deal with the Chinese in their stead for the delivery of a certain number of utility vehicles, spare parts and accessories. Indeed, this is so because a limited company can only act through its human agents,1 whether through its own directors, employees or through independent agents. I would prepare for Iffy the agency2 agreement, through which Victor will deal with the Chinese automotive executives, empowering him to negotiate and constitute a contract or contracts between Iffy and chosen Chinese auto manufacturing or dealer company or companies, as agent3 in the name of Iffy, together with the necessary instructions and document forms needed for the transactions. In the present case, I will be preparing the necessary documents to be signed by the proper company officers with the agent's conformity. The provisions of the agency agreement shall task Victor with negotiating and executing the necessary contracts for the importation of the chosen automobiles and effecting the proper secure means of delivery of the same vehicles to UK for distribution to sellers. In the present case, the agency agreement would oblige Victor to expressly name his principal, considering that there are no facts in the case that would tend to obstruct the consummation of the contract or contracts should the Chinese know of Iffy's identity. The agreement would also contain provisions on the required methods of shipping the vehicles and the means of payment. It is very crucial considering that the business transaction will be made outside of UK that the terms and conditions of the agency be expressly laid out in black and white. It is necessary for Iffy as principal to lay down the terms and conditions of the employment or to employ the agent in a specific position in the company in order for the tasks to be deducible from the very position itself. I would advise Iffy that the agency agreement between them and Victor binds both of them to the following consequences, in terms of rights and duties expressly imposed by law, jurisprudence and regulations: Iffy must remember that Victor has the following rights against them, which rights Victor can enforce in the proper judicial forum. 1. Right to remuneration4 - Victor will be entitled to the consideration based on the contract or in quantum meruit according to the extent of his performance of its terms. Furthermore, Victor as agent will be entitled to retainer or commission or royalty from Iffy for every vehicle imported even after the termination of the agency pursuant to common law rules and the Reg. 8, 1993 Commercial Agents (Council Directive).5 2. Right to indemnity - He will also be entitled to indemnity or restitution and refund