ABSTRACT
The primary intermediary agent (PIA) attempted to make contact with global suppliers by writing 15 letters of enquiry to potential suppliers on the internet. The PIA has an enquiry from an intermediary wanting to buy Portland cement. The PIA received a reply from a supplier that contained all the necessary information to enable the PIA to make their own resale offer. This information would include the specifications of the goods, the amount, a price or price index, the applicable Inco terms delivery method, payment instrument, certificates, packaging options and so on. By approaching a supplier with an informed letter to buy the PIA has completed the first step in creating the required trading path to close a potential deal. The first and most important rule of agency, which applies in many countries, is that the intermediary has decided not to disclose the end buyer, supplier or even buyer/seller and is acting on behalf of an undisclosed principal.
