Reinier advises national and international companies
reinier.russell@russell.nl +31 20 301 55 55Distribution and agency agreements are often confused. And this is not surprising: there are similarities. However, it is crucial to be aware of the differences. Why is that so important? And what are the differences?
In both distribution and agency a supplier or manufacturer uses an intermediary to promote and distribute his products. At first it may not seem to be significant how the relationship between the supplier and intermediary is characterized. Yet, the qualification is of vital importance, as in addition to the similarities there are crucial differences.
Predicting the future is difficult. However, when entering into a long-term agency or distribution relation it is crucial to think about what the situation could be like after one, two or ten years. Clarity from the start will prevent hassles later on. Therefore, it is advisable to devote attention to qualifying the relationship (particularly by asking questions as: who bears the risk of the intermediary’s actions and who will determine the sales strategy?), to actually putting this qualification into practice and to drafting a sound written distribution or agency agreement. We will gladly help you to do so of course!
Do you have any questions about this blog? Would you like us to assess or draw up a distribution of agency agreement for you? Or do you have a dispute with your distributor, agent or principal? Please contact us:
As from 3 December 2018, there will be a ban on geo-blocking by websites within the EU. What does this mean for the agency, distribution and franchise industry?
Is the supplier allowed to determine for what price the distributor has to sell products or services?
In principle, a continuing performance agreement can always be terminated, even if no arrangements have been made in this regard. But you can’t just do it. What do you need to take into account when terminating the agreement? And what if you want to deviate from the agreements made about terminating the agreement?
On 28 June 2025, the European Accessibility Act will come into force. From that data, digital products and services must also be accessible to people with disabilities. Which companies, products and services does the Act apply to? What disabilities should you take into account? What are the consequences of not complying with the Act?
If a contract has ended, there may still be obligations you want your contract partner to fulfil, such as warranties or confidentiality. You can regulate this through survival clauses. What should you look out for when including such clauses?
The franchise agreement and the distribution agreement are very similar, but there are also important differences. What are the consequences if you conclude a franchise agreement when it is actually a distribution agreement or vice versa? How can you avoid this misunderstanding?
