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Distribution, Agency & Introduction Agreements

Blacks Solicitors’ Commercial Law team provide pragmatic, cost-effective legal advice to business owners on the creation of commercial agreements.

Distribution Agreements

A Distribution Agreement is a contract between a supplier of goods and a distributor of goods.

The supplier may be a manufacturer, or a distributor reselling the goods of another party. Key clauses in a Distribution Agreement should cover:

  • The applicable Terms & Conditions of sale of goods
  • The rate, method and timing of payments
  • The duration of the Agreement, termination, and how breaches of the Agreement are handled
  • Marketing rights
  • Trade mark licensing
  • The territorial scope of the Agreement
  • Non-exclusivity or exclusivity
  • Non-compete obligations
  • Protection of trade secrets and confidential information
  • Minimum performance obligations, and/or
  • Reporting obligations

Agency Agreements

An Agency Agreement is formed when one party (an Agent), is authorised by another person (the Principal) to act on the Principal’s behalf. A Principal assigning Agency to an Agent is creating a legal relationship with that Agent. Key clauses in an Agency Agreement should cover:

  • A detailed breakdown of the duties and responsibilities of both parties
  • The territorial or other scope of the Agreement where the agent shall operate
  • Whether the Agent will have exclusive or non-exclusive rights
  • The rate, method and timing of payments
  • Any Non-Compete Agreement between the parties
  • Protection of trade secrets and confidential information
  • The level of authority to make commitments on behalf of each other
  • The duration of the Agreement, termination, and how breaches of the Agreement are handled

Introduction Agreements

An Introduction (or Commission or a Finder’s Fee) Agreement is a contract where one party (who are a supplier of goods and/or services) wishes to engage another to introduce potential clients for the goods and/or services in exchange for a commission.

An Introduction Agreement can be set up to operate on a fixed fee or percentage basis.

 

For more information on the above, or to find out how Blacks’ Commercial Law team can assist you with your commercial agreements, please email or call us today on 0113 207 0000.

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