Product Agency Agreement

  • April 11, 2021

The correct agreement is essential for the effective trade De Roythornes` Company Commercial Team can advise your company if you enter into agency and distribution agreements, if the proposed terms are correct and fair and can help you understand the legal framework and negotiate an agreement that suits you. Distribution agreements are often used in relatively inexpensive sales transactions, such as the sale of software, kitchen appliances or cosmetics. The distributor is usually a large company, such as Avon or Blackberry, which then gives resellers the right to sell the products in their own stores or to their own customers. These resellers are essentially independent contractors and not official representatives of the distributor, although they are required to act in accordance with the distributor`s guidelines. The main laws for agency contracts in the UK are the most important: you can sell your product in a new sector through agents who have in-depth knowledge of this sector. We often help our clients determine which option best fits their business objectives, and we design and negotiate the corresponding trade agreement to ensure that they have maximum legal protection in their dealings with the agents and distributors they have appointed. The role of an agency contract and a distribution contract is fundamental to the sale of products, but not everyone knows the difference between them and, according to legal criteria, the differences between the two contracts are significant. So, to understand what agency and distribution agreements are, we must first define any type of agreement. A distribution agreement is an agreement between a main distributor and a distributor that allows the distributor to sell the client`s products in a market or territory, usually an agreement in which the client is not present. The distributor is essentially a reseller for the client`s products. The client may be a manufacturer or supplier, or even a distributor himself, looking for someone who bears some of his distribution responsibility. An agency can be designated as exclusive, non-exclusive or alone.

These conditions must be defined between the parties in their agreement, but the following definitions generally apply: if there is no written agency agreement or if there is no written agreement, but no termination clause is included, the contract may be terminated by both parties with a “reasonable termination”. If the agreement is not subject to the regulations of commercial agents and the notice has not been agreed in advance, there is talk of an “appropriate termination”.