Often a business will need to consider whether to appoint a distributor or an agent to sell its goods and services, particularly in overseas territories. Local distributors and agents frequently have valuable knowledge and relationships that are hard for a business to replicate where it has no, or only a limited presence, in a particular territory.
We are very experienced in dealing with the appointment of distributors and agents, whether from the perspective of the principal making the appointment, or from the point of view of the individual distributor or agent. Where such arrangements concern activities outside of the United Kingdom, we can call upon our network of international partner firms to provide local advice.
Key areas of advice include:
- Differences between the distribution and the agency models and how this may impact on your plans
- Application and impact of the Commercial Agents (Council Directive) Regulations 1993
- Preparation and negotiation of contract terms
- Exclusivity, minimum purchasing requirements and other competition law issues
- Product liability issues
- Limitations on liability
- Retention of title/security for payment
- Commission mechanisms
- Termination and settlement of commercial agency arrangements
