The Agency Shall Be Established According To Regulations.
[case replay] in order to open up the market, a trading company in Guiyang signed an agreement with a feed company in Chongqing, which agreed that the trading company enjoys the right of agency in Guizhou. At the same time, the feed company has no right to sell itself in Guizhou area. If it finds sales, it will compensate the trade and trade company by 5 times the selling price.
On the day of signing the agreement, the commercial company paid 200 thousand yuan to the feed company and shipped away the feed.
In May 26, 2005, Chongqing feed company supplied a batch of 100 thousand yuan goods to another agricultural material company in Zunyi, and signed a sales agreement with the company in June 11th, authorized the agricultural material company to distribute the feed for Zunyi area.
In August 2005, the trading company found a breaching company's breach of contract and then sued the court for compensation.
Gao Jinliang, lawyer of Sichuan Hongyun law firm: after signing an agreement with the feed company, the company signed a sales agreement with the agricultural company and supplied the goods to the agricultural company.
Due to the agreement signed between the trading company and the feed company, it is expressly agreed that the trading company enjoys the right of agency in the Guizhou area. At the same time, the feed company has no right to sell itself in the Guizhou area. If there is a sale, it will make a claim to the trading company at a price of 5 times the selling price.
Therefore, the sales behavior of a feed company in the area where the trading company enjoys the right is a breach of contract and shall be liable according to the agreement.
Commercial companies are required to pay compensation according to law according to law, which is lawful and effective and should be protected.
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