01 / THE COMMERCIAL TEST

A contact is not a sales network

Buyer access should be evidenced, not merely claimed. Verify appropriate sector references, real decision-maker access, disciplined account management and the ability to report a credible pipeline. Conflicts of interest, product competence and financial capacity matter as much as introductions.

02 / STRUCTURE

Four models, four risk allocations

A commercial agent may promote or negotiate business for a principal. A distributor may buy for resale, hold inventory and finance customers. A service partner may maintain equipment without sales authority. A directly owned operation offers control but demands capital, people and regulatory compliance. Clarify who signs, invoices, collects and provides warranty before selecting any route.

01

Access to buyers

Demonstrated decision-maker access and sector references.

02

Sales discipline

CRM traceability, realistic coverage and reporting.

03

Brand capability

Training, service, financial and integrity controls.

04

Legal structure

A locally appropriate allocation of authority and risk.

03 / REGIONAL DIFFERENCES

Mercosur is not one agency law

Paraguay has a specific law for certain relationships between foreign firms and locally domiciled agents, representatives or distributors. Argentina regulates commercial agency in its Civil and Commercial Code. Brazil regulates qualifying autonomous representatives under Law 4.886/1965. Uruguay requires a distinct contractual and jurisprudential analysis. The choice of forum, exclusivity, termination and indemnity must be evaluated against the actual facts and current law of each country. [1]–[4]

04 / GOVERNANCE

Five verifications before granting territory

Confirm buyer access; establish product and sector capability; document financial and service capacity; investigate conflicts and ethical standards; and review contractual authority, commissions, data rights and exit obligations with qualified counsel. Short or non-exclusive pilots are not automatically exempt from mandatory provisions.

Buyer access

Check evidence instead of unsupported contact lists.

Commercial process

Define accounts, stages, decision rights and reporting.

Technical readiness

Validate service, installation and warranty requirements.

Integrity

Verify entity identity, conflicts and business conduct.

National legal review

Assess commissions, territory, exclusivity, exit and dispute terms.

05 / DECISION

Evidence should precede exclusivity

Assign territorial responsibility only after legitimate references, commercial capacity and a lawful operating model have been reviewed. A regional promise should never replace separate country decisions.