In general, the main reasons for the lack of understanding of the differences between the purpose, scope and function of a representative and distributor, and how the involvement of either supplier affects the supplier`s activity, and to what extent. In this article, I intend to provide a complete overview of what an agent and distributor is, as well as a general overview of the pros and cons that a supplier should consider before entering into an agency or distribution agreement. If a company is interested in entering into a foreign licensing agreement for the manufacture of a product in South Africa, the South African licensee must apply to the Department of Trade and Industry (DTI). DTI will in turn make a recommendation to the South African Reserve Bank (SARB) to authorize the payment of royalties. If a licensing agreement does not involve manufacturing, the South African licensee sends the request for authorization of the exchange control directly to hisRB. The calculation of discretion funds (fees, royalties, etc.), which can be set by the parties to a joint venture or licensing agreements, is subject to complex exchange controls established by the SARB and which have been less restrictive in recent years. The government prohibits contractual terms that include compulsory purchase and price agreements or require the purchaser to source on his own from the licensee. Please note that this distribution agreement should not be used when licensing or in relation to intellectual property. It is not designed as a franchise agreement for this distribution agreement. The distributor is committed to focusing its best efforts on the sale of PRODUITS licensing agreements which, in the meantime (1), provide appropriate and qualified sales and technology staff to promote the sale and support of PRODUITS, (2) launch advertising campaigns and recruit potential users to encourage product sales and (3) create and maintain relationships with potential and current customers. With regard to the agency relationship, the representative receives his remuneration through an agreed commission for the services provided to the supplier. The amount of commission to be paid by the supplier is the amount agreed between the representative and the supplier.