The third and probably the most important form of partnership
is where a public corporation, its subsidiary or its associate, enters
into a Management/Service Agreement with a multinational cor-
poration. The Management/Service Agreement embraces General
Management Agency Agreement; Consultancy Agreement; Licen-
sing Agreement; Marketing and Sales Agreement; Purchasing
agreement, etc. These agreements are not mutually exclusive and
in practice they are found in varied combinations. In each case, it
is possible that the Management Agent also participates in the
equity of the company in which case we would have Partnership-
Management Agreement, Partnership-Consultancy Agreement,
etc. The duration of the management contracts depends on the
mutual agreement of the parties and may even be automatically
renewable. Remuneration of the Managing Agents varies too. It
may take, among others, one of the following forms, singly or in
combination:

1. Commission fees;
. percentage of net sales or turnover;
. percentage of profit before taxes;
. percentage of profit after tax and depreciation;
fixed fee;
purchase of machinery, equipment, etc.
payment for travelling, board and lodging expenses;

8. royalty for patent, trade mark usage, etc.
Again it is quite common to provide in such agreements that the
payment will be made wholly or partly in foreign, named
currency.

In a number of cases the agreements stipulate the governing
law and in a substantial number, this is foreign law. In certain
cases, the Arbitration Clauses provide for the venue (London,
Paris, etc.), and even the Tribunal (International Chamber of Com-
merce, Paris, etc.).

The various forms of partnership and the different types of
Management/Service Agreements are well illustrated in the case
of the Tanzanian Public Corporation. The N.D.C. and the State
Trading Corporation (S.T.C.) have themselves employed one of
the giant American consultant firms. McKinsey & Co. Inc., for
whose services between 1968 and 1971 they together paid over
seven million shillings.® Thanks to McKinsey, N.D.C. has one of
the best public relations departments as illustrated in its glossy

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