Exclusive Supplier Agreement Uk

The two exclusive distribution agreements provide that the distributor is responsible for marketing, advertising and advertising products in the distributor`s exclusive territory. The duration of the agreement begins from the date of its execution. It can be prosecuted for a fixed period of time or for an indeterminate period. In both cases, it may be terminated earlier in certain circumstances – z.B. in the event of a breach of contract or a party`s insolvency (see termination below). There are different types of distribution agreements. Here are some more common examples: a list of the most important provisions that are generally, but not always, contained in distribution agreements: exclusive distribution is the case when the supplier commits to sell the goods defined in the agreement only to the distributor in a specific area and agrees not to enter into contracts with other distributors, or , which is important. , agrees not to sell the corresponding products to other customers in the same area. It is important to note that the principles mentioned above represent the generally accepted principles of 4 types of agreements, but there is no defined legal definition for each of them. It is therefore not enough to label your contract as one of the four types of distribution agreements. Instead, the rights, obligations and obligations of the parties with respect to exclusivity and the territory in question must be clearly defined in the contract. Important note: it is generally considered that the supplier can prohibit all “active sales” outside the area assigned to the trader. This was the position of a previous exemption by category.

However, the current category exemption is narrower (and more complex): the supplier can only prohibit “active sales” in areas reserved exclusively for themselves or another buyer. If a supplier does not have exclusive distribution agreements in any country, it cannot prevent its distributors in other countries from making active sales in that country. Companies involved in anti-competitive behaviour may consider their agreements to be unenforceable and may be accused of 10% of their global turnover due to particularly harmful behaviour and expose themselves to possible actions for damages by customers. In addition, persons linked to the transaction could face disqualification orders, or even criminal sanctions, for serious violation of competition law. Under EU competition rules, most distribution agreements will benefit from a waiver for vertical agreements. It is called “vertical agreements exemption by category.” “passive sales” means responding to unsolicited customer requests, including the provision of goods or services to those customers.

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