This document can be used as a template for the agent to propose credit trading to the principal. It is a letter to the principal and it sets out the reasons for the proposal and the extra commission rate of the credit trading.
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The document titled 'Correspondence between Principal and Agent' is a letter that serves as a form of communication between a principal and an agent. The importance of this document lies in its ability to establish a mutual understanding and agreement between the two parties involved.
The entire document consists of several sections, each serving a specific purpose. The first section includes the account information of the sender, including their first name, last name, job title, and address. This information helps in identifying the sender and establishing their credibility.
The next section includes the date of the letter, which indicates the time of correspondence. This is important for record-keeping purposes and helps in maintaining a chronological order of communication.
The salutation 'Dear Sir/Madam' is used to address the recipient of the letter in a respectful manner. This sets the tone for the rest of the communication and establishes a professional relationship.
The main body of the letter consists of the message being conveyed by the sender. In this case, the sender acknowledges the receipt of a catalogue and price list and expresses their belief that they can generate good orders for the items. However, they propose that a cash settlement basis may not be advantageous for both parties.
The sender further explains that most business in their region is conducted on credit, and suggests that the prices should be raised to cover the cost and align with competitors in terms of credit. They argue that this approach would strengthen the principal's position in the market.
The sender offers to assume full responsibility for unsettled accounts and act as del credere agents for an additional commission. This demonstrates their willingness to go the extra mile to facilitate the business relationship.
The letter concludes with a hope for a prompt response and ends with a formal closing, 'Yours faithfully', followed by the sender's name, job title, and signature.
Each section of the document plays a crucial role in conveying the message effectively and establishing a clear understanding between the principal and agent.
To effectively use the 'Correspondence between Principal and Agent' document, follow these steps:
1. Fill in the account information: Enter the first name, last name, job title, and address of the sender in the designated fields. This will ensure that the recipient can identify the sender and establish their credibility.
2. Specify the date: Enter the current date in the designated field. This will help in maintaining a record of the correspondence and ensure a chronological order of communication.
3. Address the recipient: Begin the letter with a respectful salutation, such as 'Dear Sir/Madam'. This sets the tone for the communication and establishes a professional relationship.
4. Craft the main message: In the body of the letter, clearly convey the purpose and message you wish to communicate to the recipient. In this case, acknowledge the receipt of a catalogue and price list, express interest in generating orders, and propose a credit-based approach.
5. Offer additional services: If applicable, offer to assume full responsibility for unsettled accounts and act as del credere agents for an additional commission. This demonstrates your willingness to go the extra mile to facilitate the business relationship.
6. Conclude the letter: End the letter with a hope for a prompt response and a formal closing, such as 'Yours faithfully'. Sign the letter with your name, job title, and signature.
By following these steps, you can effectively utilize the 'Correspondence between Principal and Agent' document to establish a clear understanding and agreement between the principal and agent.