It is customary to indicate that each accepted order is a separate contract between the two parties and that the sales are made within your terms and conditions of sale. You can add a copy to the agreement. Distribution agreements govern the relationship between a manufacturer or supplier with its distributor, who buys certain products and then resells them to their own customers, such as a retailer or even the end consumer. Although legally, there is no difference between distribution and re-sales agreements, but, commercially, some parties still refer to them as separate agreements. Here we try to explain the most important differences and trade considerations when we enter one of the two. However, suppliers should carefully consider the impact this may have on the distributor`s motivation. If the loss of exclusivity is correct, the agreement must be reviewed to ensure that it continues to follow competition law. One provision that can also be considered is a force majeure clause that provides for what happens when a force majeure event occurs, an event that no one could have foreseen. Given the COVID 19 pandemic, both suppliers and distributors should consider ensuring that they contain a well-developed force majeure clause in the agreement.
The parties must also agree on whether these figures are subject to a steady increase or whether they are revised on an annual basis. What will happen if there is no agreement between the parties? Could this be a redundancy event? If you have more than one product line, it may be helpful to limit the agreement to one or two lines to see how things are going. You can add more and more products later. As far as the territory is concerned, it has to be clearly defined. The duration of the agreement is a commercial consideration for the parties, but there are different alternatives. This may be a fixed duration or an initial trial period could apply. If the duration of the agreement is extended, the parties must ensure that no changes to the agreement are required before the new deadline begins. One is to appoint an agent or sales agent who promotes your products and finds buyers for you. The other is to designate a merchant or reseller who will buy your products and then resell them on their territory, which is covered in this article. The article on the differences between agents and distributors can also be useful if you are undecided that you would use better.
From a legal point of view, there is no difference between a distributor and a dealer. The possible differences between the two are purely commercial and are reflected in the development of the corresponding agreement. For example, it is imperative that the terms of a distribution agreement be clearly defined and cover all relevant issues in order to avoid possible confusion and litigation in the future and to ensure that the agreed terms are in accordance with competition law and other rules.