Warranty Distribution Agreement

In light of all that has been said above, the need for an organized and binding written agreement between the parties – the manufacturer/supplier on the one hand, and the distributor on the other – seems obvious. In the absence of a written agreement, the intentions and behaviour of a party are interpreted according to the choice of the law in force. A distribution agreement concerns the sale of goods between commercial parties bound by a contract and, therefore, the traditional international rules, including contracts governing those relationships (. For example, the UN Convention on International Contracts for the Sale of Goods, Incoterms and European Directives governing the purpose of compensation for the victim), and the rules of legal choice (contract law, property rights, etc.). We emphasize that these universal rules can vary considerably in the interpretation of the concrete case and interpret differently the initial intentions of the parties in the different aspects of the confrontation between them. The distributor sets the selling price and royalties to which supplier products are sold or conceded in the country. The distributor is solely responsible for the costs associated with the distribution of supplier products, including distribution fees, import duties, all bank fees, shipping and processing fees, installation or other operating costs, borrowing charges, transfer fees and other payment and tax charges, but which are determined, except that the distributor is not responsible for taxes based on the supplier`s revenues. A preliminary analysis and a complete understanding (both legal and commercial) of the identity of the intended distributor are of great importance. First, the distributor could be a link in a larger distribution chain; Distributor owners may operate directly or through related/related companies in other jurisdictions and markets. Consideration should be given to the distributor`s financial strength and technical capabilities in the relevant field and field. The number of years the distributor has worked in the territory and its past performance should generally be examined in the course of its activities with the producer/supplier`s direct competitors.

The agreement can thus, after receiving a complete picture of the dynamics of the potential distributor, put in place legal mechanisms to respond to the way in which the distributor is likely to operate in the relationship with the current producer/supplier. In this way, an image of the operating methods of the distributor and that of its owners can also be created and duly processed as part of the agreement.

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