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International Distribution Agreement Sample

Sample of INTERNATIONAL DISTRIBUTION AGREEMENT which incluides the main clauses and provisions that are used in this type of international agreements

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1K views11 pages

International Distribution Agreement Sample

Sample of INTERNATIONAL DISTRIBUTION AGREEMENT which incluides the main clauses and provisions that are used in this type of international agreements

Uploaded by

Global Negotiator
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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INTERNATIONAL DISTRIBUTION Agreement

1. Definition
2. Parties to the Agreement
3. Main clauses
3.1 Exclusivity
3.2 Commitment not to compete
3.3 Minimum sales targets
3.4 Conditions of sale
3.5 Advertising and publicity
4. Applicable Law
5. Model Agreement

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1. DEFINITION

The International Distribution Agreement is designed to be


used where a Supplier grants to a Distributor the right to
promote and commercialize merchandise under its own name
and on its own account with the intention of re-selling it to end
clients or retailers located in an agreed territory.
This agreement can be used for the international distribution
of different types of products such as food, beverages,
consumer goods, industrial supplies, machinery, etc.

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2. PARTIES TO THE Agreement

Usually both the Supplier and the Distributor are


companies. For each party, the following has to be
included:
• Name of company, full address and nationality.
• Company type: public limited company, limited
liability company, etc.
• Name and position of company representative
who signs the agreement.
• Tax ID number of both parties.

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3. MAIN CLAUSES AND SAMPLE

Some of the most important clauses in the International


Distribution Agreement are as follows:
• Exclusivity
• Commitment not to compete
• Minimum sales targets
• Conditions of sale
• Advertising and publicity

See sample of International Distribution Agreement

www.globalnegotiator.com
3.1 EXCLUSIVITY

“For the duration of the present Agreement, the Supplier grants


the Distributor the exclusive right to commercialize and sell the
Products within the Territory.”

“Should the Supplier sell any other product within the Territory,
they shall inform the Distributor in order to determine the
possibility of including it in the products described in the Annexes
of the present Agreement.”

See sample of International Distribution Agreement


3.2 COMMITMENT NOT TO COMPETE

“The Distributor shall not manufacture, distribute or represent any


kind of product which may compete directly with the Products without
previous authorization in writing from the Supplier. To this end the
Distributor declares that on the date of the signing of the present
Agreement, it acts as an agent or distributor for the companies and
products detailed in the Annexes of this Agreement.”

“The commitment not to compete shall be upheld throughout the


duration of the present Agreement and for ...... years after its completion.”

See sample of International Distribution Agreement


3.3 MINIMUM SALES TARGETS

“Should the Distributor not have achieved the minimum sales targets on
completion of the period in question, the Supplier shall be entitled to
choose from the following options: (a) total rescission of the Agreement;
(b) withdrawal of the right to exclusivity, where such right has been
established; (c) reduction of the size of the Territory.”

“The Supplier shall inform the Distributor in writing of the decision to


exercise this right within a period of ...... months following the end of
the year in which the minimum sales targets has not been achieved.”

See sample of International Distribution Agreement


3.4 CONDITIONS OF SALE

“The sale of Products shall be effected according to the general conditions of


sale established in the Annexes of the present Agreement. The Supplier shall
deliver the products to ............................... [mention the place: warehouse, port, airport,
etc], .......................... [city], ................................. [country], under conditions
............................... [Incoterms].”

“The Distributor agrees to comply, with the utmost care, with the terms of
payment agreed between the Parties.”

“It is agreed that the Products remain property of the Supplier until the
Distributor has completed payment for the consignment.”

See sample of International Distribution Agreement


3.5 ADVERTISING AND PUBLICITY

“Both parties may agree to joint activities of advertising and publicity


(publishing catalogues, mail marketing, point-of-sale promotions,
participation in trade fairs, advertising in Internet, etc.).”

“The costs of advertising and publicity shall be met by both parties


and according to the following proportions: Supplier ....... %;
Distributor ...... %.”

See sample of International Distribution Agreement


4. Applicable Law

The Parties shall exercises their best efforts to resolve by


negotiation any dispute, controversy o difference between
them arising out or relating to this Agreement.
The parties are free to submit any conflicts regarding the
agreement to International Arbitration or to the Laws of the
country of one of the parties.
The conflicts will normally be subject to the Courts of the
country of the Distributor and, specifically, to those of the
town/city where it has its registered offices.

See sample of International Distribution Agreement


5. MODEL Agreement

In order to obtain the model agreement in Word format


and the user guide, click on:

International Distribution Agreement

www.globalnegotiator.com

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