Agency V Distribution Agreements

In addition, this contract is defined and regulated by the Agency Contracts Act. During these years, case law has defined and limited the agreement and resolved the most problematic issues. The most important issue is the compensation of customers, which is not mentioned in any of the cases of termination of an agency contract. There are exclusive, non-exclusive and exclusive distribution agreements. Often, competition issues are also taken into account in exclusive distribution agreements. These need to be tightened than a non-exclusive agreement, as both parties have more stakes and the relationship is closer to that of a franchise. When entering into agency and distribution contracts, Roythornes` sales team can advise your company on whether the proposed terms are correct and fair, and can help you understand the legal framework and negotiate an agreement that suits you. In an agency contract, the agent finds clients for the client. The authorised representative may also be entitled to conclude contracts for the sale of goods or the provision of services on behalf of the contracting entity.

However, these contracts exist between the client and the customer. More tips on agency contracts in this part of the site. In the United Kingdom, distributors are generally not entitled to compensation or compensation in the event of termination of the distribution agreement, in accordance with the Commercial Regulations 1993. An agency can be described as exclusive, non-exclusive or exclusive. These conditions must be set between the parties in their agreement, but in general, the following definitions apply: it is difficult to predict the future. However, when it comes to establishing a long-term agency or distribution relationship, it is essential to think about the situation after one, two or ten years. Clarity from the outset prevents future problems. It is therefore advisable to ensure that the relationship is qualified (in particular by questions such as: who bears the risk of the intermediary`s actions and who determines the sales strategy?), to effectively put this qualification into practice and to establish a solid written distribution or agency contract.

We will be happy to help you! Please contact us: Agency contracts allow one party (the agent) to act on behalf of another party (the client). Agents have a lot of power because they are able to make financial decisions for the client and conclude contracts with third parties that are legally binding on the client. .

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