ABSTRACT
Acting on behalf of a Disclosed Principal is not an issue for most intermediaries, as most of people will never obtain a mandate ship or be employed by a supplier as their official agent. The fact will be apparent by the time the primary intermediary agent (PIA) and the supplier finalize the terms of their contract, or may even become evident beforehand when the PIA requests a quotation for the sale of goods by issuing a Procurement Offer. If for instance the end buyer is asking the PIA for a performance guarantee (PG) of 2 per cent, but the supplier in their deal with the PIA had offered no performance guarantee, then the two deals are not mirrored. The Policy Proof of Interest (PPI) method on the other hand protects the whole commission because the loss is provable as a breach of contract and is not directly relevant to the delivery of goods.
