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EXCLUSIVE DISTRIBUTION CONTRACT

 

In an exclusive distribution contract, the supplier appoints the distributor as its only distributor in a particular territory, usually a country. The supplier agrees not to distribute the products in the market or appoint any third party to distribute the products in the market.

The supplier will usually want something in exchange for the grant of exclusivity. The quid pro quo may take the form of a minimum purchasing commintments or other performance-related obligations.

Sometines International Distribution Contract with a exclusivity clause are called "sole distributions contracts". However, this can be misleading: a grant of sole distribution rights is sometimes taken to mean that the supplier retains the roght to distribute the products in the territory, albeit forfeiting the right to appoint any third party to do so.

Exclusivity clauses may be subject to competition law and restraints of trade laws in some jurisdictions. You will need to ensure that the exclusivity provisions you include are not illegal or unenforceable under any application laws.

Below, there is an example of exclusivity clause with several alternatives for an International Distribution Contract.

 

EXCLUSIVITY
 
Alternative A. For the duration of the present Contract, 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 present Contract.
 
Alternative B. For the duration of the present Contract, the Supplier grants the Distributor the exclusive right to commercialize and sell the products within the Territory. The Supplier may nonetheless negotiate and sell directly within the Territory to potential clients meeting the requirements established in Annex 2 of the present Contract.
 
Alternative C. For the duration of the present Contract, the Supplier may commercialize and sell the Products within the Territory, either directly or through other agents. The Distributor shall not be entitled to receive any sort of payment for such sales.
 
 

To get more information about the

International Distribution Contract click here:

INTERNATIONAL DISTRIBUTION CONTRACT TEMPLATE