Abstract
Agency/distributorship is a marketing tool in an economic system that is felt to be effective and efficient in relation to marketing networks. Normally, the regulation of agent and distributor activities has not been regulated in a specific formal law but is spread in various laws and regulations at the level of Regulations or Ministerial Decrees which do not specifically regulate agency or distributor activities. From the perspective of civil law, the validity of agency and distributor activities is based on Article 1338 of the Commercial Law Book. as the principle of freedom of contract which regulates the rights and obligations of parties in an agency/distributor agreement, namely between a business actor or principal and an agent or distributor.
Highlights
One of the important problems in a marketing system is how a production of goods and/or services can reach consumers that is spread throughout remote locations far from the manufacturer
The legality of Agency / Distributor Activities in the Civil Law Perspective In terms of regulation, the agency/distributor agreement includes an onbenoemnde contract type which is a type of agreement that is not regulated in a special section of Book III of the Commercial Law Book, but grows and develops in the practice of community economic activities
This is based on the principle of freedom of contract contained in article 1338 of the Commercial Law Book which stipulates that all treaties made legally will act as laws for those who make them
Summary
One of the important problems in a marketing system is how a production of goods and/or services can reach consumers that is spread throughout remote locations far from the manufacturer. This problem in marketing discipline (economics) is known as distribution. Considering the limitations and efficiency, including in the financial sector, it is not uncommon for business actors to surrender their marketing activities to existing intermediaries or agents or distributors compared to opening their own marketing networks. The appointment or appointment of an agent/distributor who acts represents the interests of the company in carrying out a purchase or sale (including promotion and market research activities) or producing a type of goods in a place, generally carried out with an agreement agreed by both parties. The company that makes the appointment is called the principal and the party who receives or approves the appointment is called an agent or distributor
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have