Affiliation with the Contracts Commission

Description

An affiliate commission contract is a contract by which a merchant, known as a “commission agent” or, owner of his business and independent merchant, sells goods to consumers in the name and on behalf of another person and under his banner, known as the “principal”. In return, the commission agent receives a commission calculated on the turnover he has achieved. Unlike the franchisee, the commission agent does not own the goods he offers for sale: he has received them on deposit and is responsible for selling them. He therefore does not bear the risks and costs associated with the ownership of the stock. These remain the responsibility of the sign which delivered the goods to him The affiliate commission is widely used in the textile sector – a particular form of a franchise agreement.