Correspondence between Principle and Agent

The document titled 'Correspondence between Principle and Agent' is a letter that addresses a temporary reduction in the agreed rate of commission. The importance of this document lies in its ability to communicate the reasons behind the reduction and assure the recipient that it is a temporary measure.

 

The entire document consists of a header section, a body section, and a closing section. The header section includes the account holder's first name, last name, job title, and address. The body section starts with the date of the letter and is addressed to the recipient as 'dear sir/madam.' It then explains the reason for the temporary reduction in the agreed rate of commission, which is due to an increase in manufacturing costs caused by additional duties on imported raw materials. The inability to pass on these higher costs to consumers has resulted in reduced profits, making continued production unsustainable. The closing section expresses hope for trade improvement and promises a return to the original rate of commission once the situation improves.

 

Each section of the document serves a specific purpose. The header section provides the necessary identification details of the account holder. The body section explains the reason for the temporary reduction in the agreed rate of commission, including the factors contributing to it. The closing section emphasizes the temporary nature of the reduction and assures the recipient of a return to the original rate in the future.

 

In summary, this document is essential for effectively communicating the temporary reduction in the agreed rate of commission and maintaining a transparent and professional relationship between the principle and agent.

How to use this document?

1. Start by filling in the account holder's first name, last name, job title, and address in the header section.

2. Enter the current date in the designated space.

3. Address the recipient as 'dear sir/madam' in the body section.

4. Clearly explain the reason for the temporary reduction in the agreed rate of commission, which is due to an increase in manufacturing costs caused by additional duties on imported raw materials.

5. Highlight the inability to pass on these higher costs to consumers, resulting in reduced profits that no longer justify continued production.

6. Express regret for the situation and assure the recipient that it is purely temporary.

7. Request the recipient's acceptance of a small reduction in the agreed rate of commission, suggesting a specific amount.

8. Promise a return to the original rate as soon as trade improves sufficiently.

9. Close the letter with 'yours faithfully' followed by the account holder's first name, last name, and job title.

Note: It is important to maintain a professional and respectful tone throughout the letter, focusing on the facts and providing clear explanations for the temporary reduction in the agreed rate of commission.