Expanding International Reach with an Agency Agreement

Expanding the international reach of a Brazilian Packaging Business with an Agency Agreement

Sector: Packaging Manufacturing

The Legal Need:

Our client, a Brazilian paper and card packaging business, was referred to us by a Magic Circle London law firm due to one of our Senior Associates, James Macdonald’s particular experience and expertise with the Brazilian market.

The client instructed us on the setting up of an Agency Agreement, appointing a company in the North of England as their non-exclusive agent for an initial term of three years, for the supply of their goods in the territories of United Kingdom and the Republic of Ireland.

Our Expertise:

James Macdonald, in our Corporate & Commercial Department, led the transaction. James, having worked previously as a solicitor in Brazil, has extensive knowledge of the culture of the country. This, combined with Portuguese language skill, placed him in an excellent position to navigate the complexities of the cross-border agreement and the related logistics required in importing products to the UK from Brazil.

The primary goal of the transaction for our clients was to promote their products into a new geographical area. Understanding their goals, James advised the clients on the benefits of a non-exclusive agent agreement, to provide our clients with the flexibility to seek other opportunities in the UK and Republic of Ireland, if they so wanted within the three-year period.

Advice was also given to set sales targets, which were to be agreed before the beginning of each quarter, setting expectations as to the quantity of products the agent company should be selling. It was also ensured that the relevant import regulations and tariffs of the products had been considered.

The Outcome:

The client was pleased with the result, as the agency agreement ensured they retained control of their products and supply while entering into a new overseas market.