In commodity trading, a mandate is a person or company authorised to represent a buyer or seller for a specific commercial purpose.
Seller Mandate
A seller mandate may be authorised to introduce buyers, issue offers, coordinate documentation or communicate on behalf of the seller.
Buyer Mandate
A buyer mandate may represent a buyer’s purchasing interest and coordinate with sellers or intermediaries.
Why Verification Is Important
Many transaction problems arise when parties claim mandate status without proper authority. Verification helps reduce fraud, confusion and non-circumvention disputes.
Related: Common Red Flags · Trade Facilitation Explained