Distributor Agreement Points

A. When can the supplier terminate the trader (z.B default, non-compliance with quotas, non-compliance with contractual conditions)? B. Can one of the parties terminate the contract for no reason? c. Is there notice? d. What will happen to unsold products if the contract is terminated? E. How can I return unsold products (z.B the original state)? The best time to look into the question of what happens when reporting is if you finalize the agreement. Keep in mind, therefore, that many of the proposals that should or should not be included in a distribution agreement are based on two factors. One factor is obvious: „Let us say it so that everyone knows what we need to do.” The other is not so obvious: „Let`s see that manufacturers and distributors have a disagreement about their respective rights and obligations in the event of dismissal and try to put us in the best negotiating position if such differences arise. Think about your intellectual property: if you appoint a distributor, you also license the use of your intellectual property for distribution purposes. You give them access to your most sensitive assets. It is allowed to use your domain name, logo and trademarks. If these issues are not specifically addressed in the agreement, this can lead to situations where your distributor takes possession of your intellectual property and effectively blocks you out of the territory. The termination provision is particularly important in the case of a termination agreement.

The exact amount of termination before the termination comes into force must be clearly defined in the agreement. A manufacturer generally wants a short notice period. a much longer distributor. Should the distributor be limited to a specific location? This is the so-called location clause recently approved by the Supreme Court in Continental TV v. GTE Sylvania, Inc. Sylvania. Sylvania has adopted a marketing strategy that would allow a limited number of franchises in a given territory. In other words, if you get a franchise for a particular site, you can only sell from that location. Sylvania would have a small number of outlets, but everyone would be able to do a better job in terms of marketing and service.

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