A distributor purchases stock from a business with the intention to resell it directly to the marketplace. If you choose to work with a distributor, it is imperative that your distribution contract has unambiguous terms that protect your commercial interests. Nath Solicitors creates tailor-made distribution agreements for commercial clients in London, across the UK and overseas.
Avoid disputes with distributors
When you agree a distributorship you give an independent third party the right to sell your products for profit. It’s a relationship that is ripe for disputes. Having a robust distribution agreement which:
- establishes exclusivity rights in a defined geographical area in which the distributor can sell; and
- protects intellectual property interests
can go a long way towards avoiding a breakdown of the relationship between you and the distributor.
Our commercial litigation solicitors have a wealth of experience and a proven track record in drafting and negotiating distribution contracts. We will provide fast, pragmatic, commercially astute advice, on the terms to add, ensuring that any scope for abuse is avoided.
What terms should I include in a distribution agreement?
The primary objective of a distributor is to market goods in an agreed territory. Your distribution agreement should contain clauses that require the distributor to:
- obtain any necessary licenses required to market and sell the goods
- provide you with any customer feedback and sales reports
- meet minimum sales targets or purchase a minimum amount of stock
- be responsible for any advertising and/or promotion
A distribution contract will also set out:
- how a distributor will pay and order stock
- the procedure for returning defective goods
- the mechanism for dispute resolution
To discuss how we can assist you with creating, drafting, and negotiating distribution agreements, please call our London office on 0203 670 5540 or contact us online.