Terms And Conditions Distribution Agreement

The reporting requirement should also be defined in the agreement. What exactly does the manufacturer ask distributors and how many times do they have to be submitted? Does the distributor have to draw up and submit a written sales plan or will the manufacturer do so? Some state franchise laws say that if the distributor is responsible for developing the marketing plan, the franchise law does not apply – the theory is that the franchise law only applies if the manufacturer prepares the plan and requires the distributor or franchisee to follow it. Therefore, from the manufacturer`s point of view, it may be good, at least in these countries, for the distributor to take responsibility for developing a marketing plan. The best time to look into the question of what happens when reporting is if you finalize the agreement. Keep in mind, therefore, that many of the proposals that should or should not be included in a distribution agreement are based on two factors. One factor is obvious: “Let us say it so that everyone knows what we need to do.” The other is not so obvious: “We should recognize that manufacturers and distributors have a disagreement about their respective rights and obligations in the event of termination and try to put us in the best negotiating position if such differences arise.” b. Survival. Notwithstanding the contrary provisions set out in this provision, no termination of the agreement exempts any part of any obligation which, because of its own conditions or nature, is not awaiting the date or execution of such a termination, or which relates to cases or claims that occurred or are ongoing prior to the date of such termination. Exclusiveness is not mandatory. The same right to market products abroad may be granted to more than one party at the same time. However, if the distribution rights are exclusive, several elements must be treated as follows: there are many different commercial requirements that a manufacturer/supplier may require from a distributor that it intends to name and which remains in place for the duration of the agreement. For example – and the list is not exhaustive – the establishment of authorisations of authority for the marketing of products in the market in question; Setting up a product marketing system Advertising attending conferences Employing professional staff Technical/professional customer service; a warranty and repair system, etc.