The principal is the owner of goods or money delivered to the agent(s).

The principal is the owner of goods or money delivered to the agent(s).

Article 171.- Agency remuneration

Set-up-company-in-vietnam-Vinasc21. Unless otherwise agreed, agency remuneration shall be paid to agents in the form of commission or price margin.

2. Where principals fix goods purchase or sale prices or service charge rates, agents shall enjoy commissions calculated in percentage of such goods purchase or sale prices or service charge rates.

3. Where principals do not fix goods purchase or sale prices or service charge rates but fix only agency prices, agents shall enjoy price margins. Price margin is determined to be the difference between goods purchase or sale price or service charge rate and the price fixed by the principals for the agent.

4. Where the parties do not agree upon the agency remuneration level, the remuneration level shall be calculated as follows:

a/ The actual remuneration level which has been previously paid by/to parties;

b/ Where Point a of this Clause cannot apply, the agency remuneration level shall be the average remuneration level applicable to the same type of goods or service paid by the principal to other agents;

c/ Where Points a and b of this Clause cannot apply, the agency remuneration level shall be the ordinary remuneration level applicable to the same type of goods or service in the market.

Article 172.- Rights of principals

Unless otherwise agreed, principals shall have the following rights:

1. To fix prices of goods purchased or sold or charge rates of services provided to customers under agency;

2. To fix agency prices;

3. To request agents to take security measures as provided for by law;

4. To request agents to make payments or deliver goods under agency contracts;

5. To inspect and supervise the performance of contracts by agents;

Article 173.- Obligations of principals

Unless otherwise agreed, principals shall have the following obligations:

1. To guide, supply information to, and facilitate, agents to perform agency contracts;

2. To bear responsibility for quality of goods of goods sale or purchase agents, and quality of services of service-providing agents;

3. To pay remuneration and other reasonable expenses to agents;

4. To return to agents their assets used as security (if any) upon the termination of agency contracts;

5. To bear joint responsibility for law violation acts of agents if such law violation acts are partly attributable to their faults.

Article 174.- Rights of agents

Set-up-company-in-vietnam-Vinasc1Unless otherwise agreed by the parties, agents shall have the following rights:

1. To enter into agency contracts with one or more principals, except for cases specified in Clause 7, Article 175 of this Law;

2. To request principals to deliver goods or money under agency contracts; to take back assets used as security (if any) upon the termination of agency contracts;

3. To request principals to guide, supply information and create other related conditions for the performance of agency contracts;

4. To decide on goods sale prices or service charge rates for customers, for off-take agents;

5. To enjoy remunerations and other lawful rights and interests brought about by agency activities.