Distribution Agreement Law

They differ, however, in the sense that the manufacturer wishes to retain the absolute right to redirect its distribution or to make other changes to the distribution order it wishes. He may want to replace the distributors at a later date, or he may want to eliminate all the distributors and sell them directly. He may even want to leave the business in a particular sector. The manufacturer will also want to protect its interest in its own brand, so that the distributor has no right to it. In light of all that has been said above, the need for an organized and binding written agreement between the parties – the manufacturer/supplier, on the one hand, and the distributor on the other – seems obvious. In the absence of a written agreement, the intentions and conduct of a party shall be interpreted in accordance with applicable law. In 2006 and 2008, talys signed two affiliation agreements to the medical device distribution network in 2006 and 2008, under the name “La Vitrine m├ędicale”, formed by the company Hexa to operate two points of sale in Sevrier and Aix-les-Bains. Article (…) Can the distributor compete with the manufacturer after termination? The general principle of law is that a non-competition agreement, appropriate and indelible for a commercial purpose, is applicable. If it is a mere “restriction of naked competition”, or if it is broad enough to be inappropriate, it will not be applicable. The issues that will be addressed by the Tribunal are the termination provision is particularly important in a cancellation contract. The exact notice period required before the termination takes effect must be clearly defined in the agreement.

A manufacturer usually wants a short notice period. a distributor a longer one. Some of the main clauses that you typically find in an international distribution agreement include products and territories, obligations of the parties, exclusivity clauses, renewal/termination, and dispute resolution. Should the distributor have a “primary responsibility”? The imposition of such a condition is an attempt by the manufacturer to encourage the distributor to extract all kinds of sales from a given area. Manufacturers are generally concerned about skimming dealers. Here, a merchant will make the sale easy and fast and will not look for potential new buyers. A common and mutually beneficial agreement between distributors and manufacturers could be concluded by separating from the distributor an area of primary responsibility for distribution, without actually preventing the trader from selling that sector. . . .