… you are an independent distributor with an established distribution network in a particular territory
… you have been appointed by the manufacturer or supplier of products to promote and sell them
Under a distribution agreement, a manufacturer or supplier of goods appoints an independent distributor to promote and sell its products in a particular geographical area.
The distributor undertakes to purchase the supplier’s products and re-sell them to its clients in this area, in its own name and for its own account.
Although the law is unclear on this subject, there is increasing support in doctrine and case law for the principle of financial compensation in favour of the distributor for the customers it has acquired during the term of the agreement. It is therefore necessary to draft the provisions concerning the settlement of contractual relations carefully, to avoid any unpleasant surprises when the agreement comes to an end.
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