Legal Question in Business Law in Israel

Re: Agent collecting commission from supplier

Dear Garima,

You need to enter into a Service Contract with the Israel party clearly stating that the Israel party would be liable to pay you the commission upon receipt of the L/C amount. In this regard, you can ask the Israel party to create an escrow account with a bank and deposit the commission money in it. In such a case you need to satisfy the bank that the Israel party has received the L/C amount and then the Bank shall become liable to pay the commission amount to you. Banks are safer institutions to rely on rather than exporters.

Re: Agent collecting commission from supplier

You sign a simple agreement stating the terms suitable to you.Besides this,and most important part is the mechanism in the agreement for dispute resolution and choice of forum that depends upon your convenence.

Re: Agent collecting commission from supplier

You need to sign a contract with the Israel party for appointing you as itss commission agent.L/c should incorporate that disbursements as commission be paid to you before release of money to Israel party.There are other ways of working this business relationship too and ultimate decision may be based on your covenience , feasibility and efficacy of vehicle adopted. You can contact us for further details.

Re: Agent collecting commission from supplier

Since it is clear that collection according to the contract should be made in Israel, even if India law is applicable, the contract should be drafted in a manner that will be applicable and enforceable in Israel. It is most recommended that it would be drafted by an Israeli lawyer. For more details: [email protected] (+972-3-6242015)

Re: Agent collecting commission from supplier

You have not clarified whether you want to enter into the contract in India or in Israel. Nature and contents of a contract changes according to the law applicable. In India it will be generally governed by Contract Act and relevant provisions of FEMA etc.

Re: Agent collecting commission from supplier

From the limited information made available to us, we understand your role as a commission agent between two parties. While dealing with international clients risk involved is too high because of less enforceability of the respective laws of different countries.

And it is must to build as much as possible documentation. To secure your interest you may insist the following from Israel party;

1. the condition of payment of commission be incorporated in L?C

2. If it is not possible, enter into an agreement with Italian party, clearly incorporating the commission terms and incorporate the said agreement in terms and conditions of the L/C.

3. enter into a tripartite agreement with the garment buyer and Israel party clearly mentioning the terms of the agreement

4. If 3 is not possible, enter into meticulously drafted agreement with garment buyer as well as with Israel party, separately.

However, drafting of the agreement shall be good enough to bind the parties within applicable laws of India.

For any clarification please feel free to contact.

Vimal Kishor

+91-9810846309