Checklist for the Appointment of a Distributor
This checklist is designed to help a manufacturer or supplier of goods to be aware of the main points it should consider when appointing a distributor, either in the UK or elsewhere.
It is appropriate for the appointment of a distributor (who buys from the supplier and sells on to wholesalers, retailers or customers) but not necessarily appropriate for the appointment of an agent (who introduces customers to the supplier and receives commission on the value of such sales). Click here for a checklist for the appointment of an agent.
Issues to consider on the appointment of any distributor are as follows:
- The parties
- Territory/products
- Nature of appointment
- Duration of appointment
- Distributor's obligations or restrictions
- Supplier's obligations
- Sales outside the territory
- Advertising, promotion and training
- Terms of sale of the products
- Intellectual property
- Termination
- Arbitration
- Relevant international law
- Notification
*Design and technology by Precedent