How is understanding reached between Trading House and manufacturer?
The Trading House and the manufacturer should discuss their working arrangement and prepare a Memorandum of Understanding (MOU). The drafting of the MOU can result in contentious arguments but it is useful to get all points clarified and reduced to writing before the start of business. If there is a spirit of mutual give and take and if both parties are looking for long term gains from the partnership then most issues do get resolved, often through compromise. The MOU should cover all the important matters relating to the arrangement, particularly: • Territories and Products.
