Sale and Agency

May 19, 2023

It is vital to distinguish between a sale and an agency because when a merchant buys products from a manufacturer or wholesaler, it may be crucial to determine whether he did so directly or through an intermediary. In the event that the items are lost or one of the parties becomes insolvent, the distinction’s relevance becomes crucial.

When a company were appointed sale agents for the sale of all the bricks produced by the manufacturers for a period of three years, it was determined that the relationship was between the seller and the buyer rather than between the agency and the principal.

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