What are the differences between an Agent and a Distributor? An Agent is a person employed by a Principal to make contracts on the
principal‘s behalf with Third Parties. The Agent puts the Principal into
contractual relations with the overseas buyer(s). There is no contract of sale
between the Agent and the Buyer. The agent does not take the commercial risk.
It is the Principal who takes the commercial risk.
A Distributor buys goods for their own account to resell into their
overseas market. The contract of sale is between the Principal and the
Distributor. There is no contractual relationship between the Principal and the
Distributor‘s customers.