Companies involved in anti-competitive behaviour may find that their agreements are unenforceable and could face fines of up to 10% of their global turnover. Those involved in the company may also find that they are affected by decisions to withdraw directors or criminal convictions for serious violations of competition law. Given the risks, it is imperative that all agreements of lawyers with competition experience be reviewed. Distribution agreements generally apply to a specific “territory” in which the distributor will operate. Distributors will then sometimes look for certain protections from the supplier to ensure that other distributors do not invade this area. In this context, there are a number of types of distribution agreements. A distribution agreement is a legal agreement between a supplier of goods and a distributor of goods. The supplier may be a manufacturer or a distributor who resells the goods of another. Distribution agreements can be due to both UK competition law and EU competition law, so caution should be exercised when developing them. This briefing note summarizes some of the key considerations to consider when developing a distribution agreement. All of our distribution agreements include optional “delivery conditions” that define the precise conditions for which products are delivered (e.g.B.
delivery obligations and risk and transfer of ownership). You can also include your own terms of delivery as an annex to the main distribution contract. There are different types of distribution agreements. Some more common examples are cited below: a list of the main provisions that are generally, but not always, contained in distribution agreements: other tasks are likely to be significantly different from those of an agent because of the different nature of the agreements. You will find the following clauses in a typical distribution agreement. Finally, the exclusive premium distribution contract includes an optional provision requiring the distributor to spend a certain amount on advertising. Evaluations of a company`s distribution agreements, whether or not they are a large company, can save time and money in the long run. Most distribution agreements should not pose competition problems, provided that the supplier`s market share is less than 30% and the parties ensure that they do not approach the characterized restrictions (for details, see below).
You can prevent the distributor from selling in areas reserved by a supplier for itself or for an exclusive distributor.