A distribution agreement should firstly deal with the appointment of the distributor and the terms of the appointment. Is the distributor to be granted an exclusive right to distribute the goods in a reserved area and should the distributor be allowed to distribute the goods outside this area? Both considerations will have to be considered in the light of competition law provisions.
The agreement may be used to control the channels within which the distributor can operate. For instance, should the distributor be able to supply the products over the internet or make further wholesale supplies?
"White labelling" whereby the distributor receives the products and resupplies them under its own brand or the brand of another business, is also an arrangement that can be dealt with in such an agreement.
The agreement should also deal with the respective duties of the distributor and the supplier. Who is to advertise the product; will there be any sales targets; how is stock to be held and ordered?
Of crucial consideration will be the terms of payment and the passing of the title of the goods. Is title to be passed on delivery or only once the distributor has paid for the goods? Is the supplier to be granted the means to re-obtain the stock should the distributor delay payment?
A member of our specialist Business Law team can provide specialist advice as to content of your distribution agreement.
Your quality of work, attention to detail, communication and general all round enthusiasm has been greatly appreciated as I have often become quite overwhelmed when reviewing them myself.
Ecompli (UK) Ltd
Very thorough and precise with each contract and have made it very easy for us to feel very confident going into new territories, whether it being a different country or a different manufacturer.
Have dealt with several staff at Forbes. Always very clear, professional and approachable. Happy to recommend them and will use again.
John brings a high level of expertise which we're sure will benefit our members.
NWL Chamber of Commerce
Forbes Solicitors have acted on behalf of WEC Group Limited for many years providing advice on a range of matters including Corporate & Restructuring and Commercial Property.
WEC Group Limited
John provides practical and concise advice and support in a professional and timely manner.
Thanks John, your services have been impeccable and as such I will have no hesitation to recommend both your services and those of Forbes Solicitors.
GM Bespoke Events