Advise to Rig Repair & Parts Limited in its International Business Coursework

Advise to Rig Repair & Parts Limited in its International Business Expansion - Coursework Example The issue with Agency B is a very complicated one. Agency B has the sole agency rights for RRP in South Africa. This makes them the only agency that can source for projects in South Africa for RPR. If care is not taken by RPR, it could get involved in a breach of contract with Agency B if it goes ahead to sign this contract with Agency A. If this happens, Agency B will be entitled to claims for damages. Secondly, if RRP goes ahead to sign this contract with Agency A, granting it exclusive rights without a proper care with regards to the agreement with Agency B, Agency A will not get access to the exclusivity it desires. This could also pose legal problems for Agency A and B in their operations in South Africa. This arrangement is a principal-agency arrangement in an international context. A principal-agent relationship exists when a party pursues to direct the actions of the opposite party to his own ends for mutual benefits like shareholder-manager and employer-employee relationships (Jager, 2008). This, therefore, means that the principal-agent arrangement is one where the principal allows the agent to further his interest and in that process, there is a symbiotic relationship whereby the agent also benefits from some consideration from the principal. The principal gives out a duty to the agent and as the agent goes about it, he gets some benefits and rewards for his efforts. This, therefore, makes it a mutual relationship between both parties. Under international law, the UN Convention on Agency in the International Sale of Goods offers a very broad and comprehensive framework for principal-agent relationships between parties from different parts of the world (Cheng, 1990). South Africa is a signatory to the convention. Under the convention, there are three main elements that are crucial and must be honored by both parties.