Analysis Of Foreign Trade Agency System

The Foreign Trade Agency is a typical Commercial Agency in the world. But the Foreign Trade Agency in China was in chaos before the promulgation of the Contract Law of PRC. So the Contract Law of PRC introduced the Unnamed Principal (Article 402) and Undisclosed Principal (Article 403) into China which played important roles in solving the chaos aforementioned.However, the legislation of Article 402 and Article 403 was full of compromise and the world of jurisprudence in China had not prepared well for the introducing of Unnamed Principal and Undisclosed Principal. As a result, Article 402 and Article 403 introduced from the Common Law System can hardly match the Commission Agency from the Continental Law System which is also stipulated in the Contract Law of PRC. This contradiction caused the confusion of applying to the agency rules between them. Under this circumstance, one particular practise of foreign trade agency could legally apply to two (or even three) kinds of the agency rules which lead to different settings of legal rights and obligations among three parties of foreign trade agency.This uncertainty of applying to the agency rules brings each party a large scale of legal risk unnecessary. For this reason, the author tried to make one particular practise of foreign trade agency be in accordance with one particular agency rule in the Contract Law of PRC by means of drafting the contract clauses smartly in order to avoid the legal risk forementioned.