This essay is seeking to advice PPP, a water sports company, for the most suitable business structure that it is possible for it to chose after his decision to work jointly with Carver, a small Australian Company, for the launch for a device and accompanying water repellent lacquer spray. This essay will be divided in eight separate parts. The first part of the essay will explain the possible structure which the parties could make their deal, namely agency, long term supply, distributorship, franchising, or joint venture deals. Each of them will be explained separately and in the subsequent parpagpraphs will be evaluated weighting their advantages and disadvantages in order to find the most appropriate one for achieving PPP’ s best interest. Subsequently this essay will address all the legal aspects of deal which the party need to have in mind. These aspects are the documentation requirements that the parties need to establish forming their business, the regulatory issues that fit to the deal and some extra commercial issues that they have to bear in mind. Also, this essay will state the applicable law and jurisdiction.
The agency, distributorship and franchisee arrangement are very similar each other. The agency agreement is one where the agent acts as an intermediary between the principal and the customer. Therefore, the agent is not a party to the contract with the customer and thus he does not have any rights and obligations under it. A distributory agreement, in one where the distributor purshaces the goods from the manufacturer and then resells the goods manufacturer’s behalf, as it makes contract on its own name. A franchise agreement, arises where the franchisee operates under a common trade name that is owed and controlled by the franchisor.
In respect of the joint venture agreement, it describes a commercial arrangement connecting two or more economically sovereign entities which can effectively be divided in one of four basic legal...