Supplier Reseller Agreement

The number of products to be made available to the distributor and the date of these products must also be agreed. This is often based on forecast figures provided by the distributor. However, suppliers must carefully assess the impact this may have on the distributor`s motivation. In the event of loss of exclusivity, the agreement must be reviewed to ensure that it remains in conformity with competition law. The parties must agree on the date on which the contract can be terminated. For example, can either party terminate the termination agreement (and how long should that notice be) or must a party breach or be subject to an insolvency event? If the distributor does not meet the minimum acceptance targets, can the supplier terminate the contract? g. Global Agreement. This Agreement contains the entire agreement between the Parties with respect to the proposed transactions and supersedes all prior written and oral agreements as well as all concurrent oral agreements relating to such transactions. Other provisions will also be included in the distribution contract. Specific obligations for each distributor and supplier will be defined, for example: Make sure you protect your copyrights, patents and trademarks.

Your distributor should only be allowed to use it as long as the agreement remains in force and it is useful to have a clause obliging them to inform you and act to protect your interests, for example when counterfeit goods appear on the market. It is important to distinguish the reseller relationship from similar (but different) relationships: you should in any case include some sales targets agreed in the agreement, as this will allow you to monitor the distributor`s performance. Coupled with revenue targets, this should be a plan that will not only allow you to revise the targets, but also allow you to terminate the contract if, for example, the targets of two or three consecutive quarters are not met. The products covered by the agreement must be clearly defined. This can be done in several ways, for example. B by description, identification number, brand number, etc., and depends on the nature of the product concerned. The supplier probably wants flexibility to modify the product, either because of innovation or because it removes a product from the market. However, the distributor will want to ensure that all exclusive rights it has with respect to new products will be maintained. Termination of such an agreement may give rise to significant claims for compensation in some countries, so you should have recourse to legal advice before completing the text. If you are a reseller who wishes to enter into a reseller agreement or if you are a supplier who wishes to create your reseller agreement, you must ensure that your rights and interests are protected. For more information on competition law and distribution agreements, click here: Horizontal and vertical agreements….

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