bto solicitors - Corporate & Commercial Business Lawyers Glasgow Edinburgh Scotland

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Distribution

A supplier may decide to appoint a distributor as opposed to an agent. Below are some practical considerations for a distributorship agreement:

  • What type of distributorship agreement is to be applied? (exclusive distributorship agreement, sole distributorship agreement, non-exclusive distributorship agreement or selective distributorship agreement).
  • Define what products are to be sold and distributed.
  • Define the exact territory.
  • For how long is the Agreement to subsist?
  • Price, payment, title and delivery ought to be considered.
  • Is the distributor able to appoint a sub-distributor or agent of the sale of the products in the territory?
  • Who is to be responsible for all customs clearances and payment of duties?
  • Is the distributor to acquire any intellectual property rights in the products?
  • What are the distributor’s obligations?
  • What are the principal’s obligations?
  • How are disputes to be resolved?
  • Has the issue of trade marks and patents been considered?
  • In the event of a breach of obligations by either party, what is the termination procedure?
  • What is the effect of termination?
  • Restrictive covenants, warranties and exclusion clauses should be considered.

Contact: Alastair Dunn, Partner akd@bto.co.uk / Jeremy Glen, Partner jsg@bto.co.uk  /  T. 0141 221 8012 

 

 

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