According to the power the principal has delegated to a selling agent, the agent may just introduce the potential
customer to the principal or actually negotiate and conclude the contract between the two parties. The have the
a) An agent can only operate within the marketing territory authorized by the principal.
b) An agent does not carry stock. The goods are carried only as consignment inventory. Payment is based on delivery to the ultimate buyer.
c) The principal (exporter) set the retail price, retains title and controls the goods.
d) The profit and risk of loss remains within the principal, unless the agent is a del credere one.
e) Agents are usually paid with commission.