Coin Machine Review (& Pacific ...)

subjected, it may prove insufficient to ac-
complish the very purpose for which It was
executed, in which case a new power of at-
torney would have to be drawn reciting
specifically the powers which the original
power failed to include.
Whether th e agency is one of exclusive
distributorship or of lesser scope, if a mu-
tually profitable business is to result to
principal and agent, the parties usually
want some assurance of con tinuance of the
relation.
Formal agency contracts are generally to
be preferred to loose and indefinite arrange-
ments. They are accorded greater respect
by importers and dealers in foreign coun-
tries; th ey furnish a convenient index to
the rights and liabilities of the parties;
they possess greater eviden tial value in case
of liti gation, and they are more easily
brought to the notice of third parties hav-
the amount of the tax from money due the
principal. Speaking parenthetically, a with-
holding provision is no doubt familiar to
most of you here as income taxpayers.
The instrument from which the agent de-
rives .h is authority to act is called a power
of attorney. In the Latin American coun-
tries the law requires that powers of attor-
ney must be registered in the proper Pub-
lic Registry of Commerce or be protocal-
ized by a notary. It becomes a public docu-
ment and must meet the tests of courts of
law or other official or quasi-officiaf bodies
in the country of use.
The power of attorney in foreign
countries, especially in those of Latin
America, is a far more superior instru-
ment to what it is in our practice.
Unless the power is drawn with the ut-
most care and with a full and complete
knowledge of the tests to which it will be
0===0===0
~~
WAR BONDS
mut
STAMPS
N
COIN
MACHINE
R.EVIEW
o
W
12
FOR.
JUNE
1944
-and for real VICTORY
against Cash Box SABOTAGE
install
the famous. patented
Chicago
"ACE"
Lock
Individually Registered Key Serv-
ice. All loc~s can be keyed alike.
... ...
Remember-There's
for Every Protection Need
Locks • • • for new equipment and replacements • • • Ace Locks,
Single Bitted, Double Bitted Locks • • • Padlocks, too • • • and
ALL Insure-"UTMOST SECURITY"
DEPT. 95
~~
ing dealings with the agent.
Some of the provisions which will usu-
ally be included in the contract of agency
are:
Whether the agent is to b e an exclu-
sive agent or whether other agents may
be appointed and whether the agent
mayor may not represent other princi-
pals handling similar lines or different
lines of merchandise:
The territory to be covered, and the
penalties to be imposed for infringe-
ment of the territorial limitations;
The duration of the contract and the
rights if any to accrue to the principal
in the customer lists developed by the
agent , upon termination of the agree-
ment;
Provision for the renewal of the
agreement;
How the contract is to be termina ted,
when b y notice and how b y default;
How the agent's compen sation or
commission is to be calculated and
paid, and when it is to b e considered
earned: at the time the shipment is
made or when the proceeds of the sale
are accounted for; and
The extent to which the principal is
authorized to approve credit s tanding
of the customer.
It is most advisable to insert a clause de-
claring the law under which the contract
of agency is to be interpreted. The parties
should expressly stipulate in the contract
that their rights and liabilities shall be gov-
erned by the law of a particular American
state or by that of the foreign country.
What the law of the foreign country is
will, of course, determine whether or not
the local foreign trader would consent to
have an agreement interpreted and adju-
dicated according to that country's laws, as
will also the importance of the transactions.
The foregoing items to be incorporated in
an agency agreement are far from being
complete, but simply indicate some of the
numerous items required to be considered
and provided for in properly drawing up an
adequate agency agreement.
Since an agent's acts are, as a rule the
acts of the principal, the latter is bound by
contracts made by the agent for the princi-
pal. The transaction must be, of course, one
which was authorized by the principal or
which is subsequently ratified by him.
The word "contract" here must not be
considered in the form of a formally drawn
A Beverage Franchise House with several
hundred bottlers is interested in distributing
Bottle Beverage Vendors as soo'n as they are
available. Manufacturers with volume plant
capacity are invited to write.
BOX 575
COIN MACHINE REVIEW
1115 Venice Blvd. , Los Angeles IS, Cal.
If You Want
to Buy
CONVERSIONS
-SEE-
PAUL A. LAYMON
DISTRIBUTOR
1503 West Pico
,THE BLlJE BLOODS OF THE INDUSTRY READ THE REVIEW EXCLUSIVELY!