Tripartite agreement in the sphere of services and sales

In the practice of commercial activity, it is not uncommon for a situation when a service is provided or delivered by one person (firm), receives another, and the payer is the third. In this case, the tripartite agreement will be the best solution. In international relations, in the cooperation of organizations, institutions, countries, such treaties are generally accepted and common forms of agreements.

In what situations is the trilateral agreement still used? A good example is voluntary insurance. In this case, an individual or a legal entity acts as a policyholder. It (or another person, for example, a child or a subsidiary) can be insured, and the third party is an insurance company. Similarly, the form of the tripartite guarantee agreement is used. For example, to make purchases of goods for a certain amount, the buyer must provide payment guarantees, and for objective reasons he can not give them. In this case a tripartite agreement is concluded between the buyer, the seller and the guarantor, in which the amount of liability, the validity period, the amount of guarantees and the conditions for satisfying the claims are prescribed.

In commercial practice, such purchase contracts are often used. This may apply to the acquisition of real estate, when an object acquires one person from another, and payment is made by the third. In the supply chain, a tripartite supply contract can be extremely useful, since it makes the relationship between the buyer, supplier and recipient transparent. It clearly indicates who and on what terms the goods are received, who pays it, in what terms and in what form. It is particularly important to take into account all the details (as well as the jurisdiction under which disputes are settled) under this form of contract between the exporter, importer and the final recipient. Other such documents useful in trading activities may be agreements of surety, leasing, and lending.

In the field of services, there is a so-called tripartite contracting agreement. At the same time, the service (for example, construction and installation works, network connection, website development, design services) turns out to be one person to another, and the third party (sponsor, investor) pays for itself. Most often, such forms of agreements are concluded if one of the parties is a non-profit or charitable organization. A variety of commercial relations, in which one of the persons acts as an intermediary, can be considered a service of promotion of goods or establishment of business ties. To ensure that the intermediary is guaranteed his commission, and the parties were confident that he does not exceed his authority, a tripartite agreement is necessary. The document must necessarily specify the rights and obligations of the intermediary, the supplier and the final consumer. In practice, there are often situations where the intermediary has performed his part of the work, but any of the parties does not want to pay for his services. In order to avoid this, it is also necessary to clearly state what exactly will be considered "the performance of the mediation service" under this agreement. In some cases, such an arrangement may be the organization of a meeting of counterparties, while in others, only after transferring funds to the seller's account, the intermediary will be able to receive his reward.