Distributorship Agreement Summary – Tuyuri Karin


Distributorship Agreement Summary


Finally, distribution agreements should include provisions on dispute settlement. Regardless of the quality of the relationship between the supplier and the distributor, there is always a risk of litigation. Is the distribution partnership possible? Here, too, we often have different views on this. The manufacturer will say, “I want to know who I`m dealing with.” The distributor, meanwhile, will say, “I`ve spent a lot of time and energy building my territory, and I want to be able to enjoy it by selling my route or territory to someone else.” Some international distribution agreements contain exclusivity clauses. While not all of these agreements are exclusive, they are a topic that should be addressed in contract negotiations. The distribution contract may or may not offer the distributor the right to heal the performance of the contract. Our own view is that it is necessary and appropriate to have the right to healing in virtually all treaties. No one should ever breach a contract except: g. the global agreement.

This Agreement contains the entire agreement between the Parties with respect to the proposed transactions and supersedes all prior written and oral agreements as well as all concurrent oral agreements relating to such transactions. In addition, the manufacturer or supplier must decide on a distribution strategy when considering the type of agreement to be concluded. A selective strategy requires a small group of distributors to cover the channel partner`s target markets. An intensive strategy aims to put the product in front of as many potential buyers as possible through wide dissemination. The latter point generally applies to consumer-oriented products rather than products developed for commercial markets. We are also of the view that in most distribution agreements that must last for a certain period of time, the parties must “swim with electricity.” Products change, management changes, brands change, market tastes change and, in fact, almost everything can be significantly different in the business environment in which the manufacturer and distributor operate, ten years after the contract is signed. Most distribution agreements are long and so we believe that the letter that embodies these agreements should be flexible enough to cope with changing environments without the parties having to constantly modify the agreement. . . .