INTERNATIONAL DISTRIBUTION CONTRACT CHECKLIST
The purpose of an International Distribution Contracts is to establish one or more sales points within a geographical area in a foreign country from which goods and services can be offered to a specific clientele.
This type of contract enables suppliers - i.e. manufacturers of different products - to benefit from existing commercial facilities and to select their trading partners. This commercial contract model also has the advantage of enabling suppliers to impose sales methods and practices associated with their products or brands.
The international distribution contract is a framework agreement, which means that it establishes general obligations for each of the parties over a lengthy period and is supplemented by general conditions of sales which are often annexed to the contract in order to specify the products and/or services in question, prices, delivery arrangements, etc.
There are different models of international distribution contracts made by different companies and organizations whose purpose is to ease the negotiation and agreement between suppliers and distributors.
Below, we offer a checklist of 30 key elements that must be clearly defined in an International Distribution Contract.
International Distribution Contract Checklist
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Contract date |
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Supplier´s warranty |
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Indentification of Parties |
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Distributor´s warranty |
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Product and Territory |
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Advertising and publicity |
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Obligatios of the Distributor |
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Commintment to inform the Supplier |
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Commitment not to compete |
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Commintment to informe the Distributor |
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Minimum sales objective |
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Early termination |
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Conditions of sale |
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Compensation for termination |
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Prices and discounts |
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Term of contract |
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Resale prices |
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Repurchase of products |
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Condidentiality |
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Return of promotional material |
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External distribution nerwork |
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Inspection of facilities |
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Intellectula Property Rights |
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Assignment of contract |
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Minimum stock |
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Notices |
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Technical assistance |
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Arbitration |
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After-sales service and maintenance |
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Applicable legislation |