Some international distribution agreements contain exclusivity clauses. While not all of these agreements are exclusive, this is an issue that should be addressed in the treaty negotiations. Non-exclusive distribution is that the supplier has the full freedom to sell to both end consumers and to designate other distributors within the specified area. Exclusive distribution shipping is the case where the supplier designates a distributor as its only (or „unique“ distributor in a given territory, but unlike the „exclusive distribution model,“ the supplier is still able to market the products in question to end consumers as it sees fit. Both parties can use an exclusive distribution agreement in different ways. Sometimes the distributor is the sole distributor of the supplier`s product within a given geographic area. In other exclusive agreements, the distributor is the sole authority to sell the product to specific customers, i.e. no other distributor can sell it to those customers. Exclusive agreements are often used when the product is expensive or when it is clear and technical, which requires a particular knowledge of the goods and the market. c. Products. The products manufactured by the company and sold to the distributor are: To protect your business, it is a good idea to know these common and important agreements. Exclusive distribution is the case where the supplier agrees to sell the goods under the agreement only to the trader in a given territory and undertakes not to enter into contracts with other distributors or, importantly, not to sell the corresponding goods directly to other customers located in the same territory.
Like other trade agreements, it is imperative that an international distribution contract clearly clarify the responsibilities of each party. Both the supplier and the distributor must have clarity on their obligations that must be met under the terms of the transaction. A distribution contract is a commercial contract between a supplier of goods and a distributor of goods. The supplier may be a manufacturer or reseller of the products. Selective distribution is the case when the supplier designates a distributor under a „selective distribution system“ in which it appoints additional distributors only if they meet certain criteria. It is a unique system specifically used to allow the supplier to retain control of its distribution network, particularly with regard to quality control, while working with EU and UK competition rules. Selective distribution agreements are often used by luxury brands to ensure the maintenance of the quality of the product and the commercial will of the brand. Some of the rules for distribution agreements differ with respect to the application of a selective distribution model. Evaluations of a company`s distribution agreements, whether or not they are a large company, can save time and money in the long run.