In the practice of commercial activity, it is not uncommon for a service to be provided or delivered by one person (company), received by another, and the third is the payer. In this case, the trilateral agreement would be the best solution.
In international relations, in the cooperation of organizations, institutions, countries, such agreements are generally accepted and widespread forms of agreements.
In what situations is the tripartite agreement still used? A good example is voluntary insurance. In this case, an individual or legal entity acts as an insured. 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 a tripartite surety agreement is used. For example, to make purchases of goods for a certain amount, the buyer must provide payment guarantees, but for objective reasons he cannot give them. In this case, a tripartite agreement is concluded between the buyer, seller and the guarantor, which sets out the amount of liability, the validity period, the amount of guarantees and the conditions for satisfying the requirements.
In trading practice, similar purchase agreements are often used. This may relate to the acquisition of real estate, when one person acquires the object from another, and payment is made by a third. In the supply chain, a tripartite supply contract can be extremely useful, as it makes the relationship between the buyer, supplier and recipient transparent. It clearly indicates who and on what terms receives the goods, who pays for it, when and in what form. It is especially important to take into account all the details (as well as what jurisdiction the resolution of disputes falls under) in this form of contract between the exporter, importer and final recipient. Other such documents useful in trading activities may include agreements of guarantee, leasing, and lending.
In the field of services, the so-called tripartite contract works . At the same time, the service (for example, construction and installation works, network connection, website development, design services) is provided by one person to another, and a third party takes charge (sponsor, investor).
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 promoting a product or establishing business relations. To ensure that the intermediary is guaranteed to receive his
commission, and the parties are confident that he does not exceed his authority, it is necessary to conclude a tripartite agreement. The document must necessarily indicate the rights and obligations of the intermediary, supplier and final consumer. In practice, there are often situations when the intermediary has completed his part of the work, but one of the parties does not want to pay for its services. In order to avoid this, it is also necessary to clearly state what exactly will be considered “fulfillment of the intermediary service” under this agreement. In some cases, such a meeting may be considered the organization of a meeting of counterparties, in others, only after the funds are transferred to the seller’s account, the intermediary will be able to receive his remuneration.