How To Negotiate A Distribution Agreement

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The manufacturer might want a clause in the contract stating that the dealer has been represented by a lawyer. Some rather harsh provisions were applied against a trader if the trader was a competent businessman represented by a lawyer. Some manufacturers` lawyers conclude that a clause stipulating that the merchant was represented by a lawyer is desirable. Of course, a trader should get advice to represent him. A distribution agreement is one of the most important documents a distributor will ever sign. It can indeed be the basis of all its activity. The same goes for the manufacturer. Therefore, in the opinion of each party, it is essential to represent them by competent and experienced consultants. Any clause in the agreement should aim to strike a balance between the power of the distributor and that of the supplier. If there is a paragraph refining the obligations and obligations of the distributor, there should also be a paragraph refining the obligations and obligations of the supplier. A unilateral clause often leads to the distrust of one party by the other. Distrust always acts against the evolution of the relationship and, ultimately, against turnover and turnover growth, the initial purposes of the relationship and the contract. .

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