1:Mene, a citizen of Papua new guinea, resides in Singapore and conducts business solely by facilitating international trade (exports from and imports into Papua new guinea). Amatere who has a auto part shop in goroka, has engaged mene to assist in sourcing auto parts in Singapore or elsewhere for retail at the goroka shop.

Question

A: explain the type of agency between Mene and Amatere.
B: differentiate the agency in your answer above (A) from the other type of agency

Answer 1

A: Type of Agency Between Mene and Amatere

The type of agency between Mene and Amatere is a distributorship or procurement agency. In this arrangement, Mene acts as an agent who sources and facilitates the purchase of auto parts on behalf of Amatere. Mene is not selling goods directly to consumers; instead, he is providing a service that enables Amatere to acquire products for resale in his auto parts shop in Goroka.

In this context, Mene's role involves:

• Finding suppliers of auto parts.
• Negotiating terms of purchase.
• Arranging logistics for the export of sourced products to Papua New Guinea.

Mene does not take ownership of the auto parts but rather acts on Amatere’s behalf to facilitate international trade transactions.

B: Differentiation from Other Types of Agency

1. Distributorship Agency vs. Broker Agency:

   • In a broker agency, the broker acts as an intermediary between buyers and sellers without taking ownership of the goods. They facilitate the transaction and earn a commission. In contrast, Mene’s role is more proactive, as he is responsible for sourcing products and may have ongoing obligations to Amatere, unlike a broker who typically operates on a transactional basis.

2. Distributorship Agency vs. General Agency:

   • A general agency involves a broader authority where the agent can act on behalf of the principal in a variety of matters, not limited to specific transactions. In this case, Mene's agency is more specialized, focusing specifically on sourcing auto parts for Amatere as per the agreed terms.

3. Distributorship Agency vs. Exclusive Agency:

   • In an exclusive agency agreement, the agent is granted exclusive rights to sell or distribute products in a specific area. Mene does not have exclusive rights; he is simply facilitating purchases for Amatere from various suppliers. Amatere could potentially engage other agents or source products independently.

In summary, the agency relationship between Mene and Amatere is a specialized procuring agency that differs from other types of agency arrangements primarily in terms of the scope of authority and responsibilities involved in facilitating the trading of goods.