C-3-3- The export distribution contract


3-3-1- Small reminder

Esandis offers you free import and export tools, and all the necessary skills. Our objective here is to provide the necessary information to help you understand the issues facing contractual parties through an import or export transaction. Though international transactions are governed by laws and conventions, contract clauses and options must be well-understood.

It would be a good idea to seek legal advice to guide you through this process.

Our objective here is to guide you to the right decisions. There is comfort in the ability to include desired clauses in your contract, but, of course, they must be valid. The drafting of contracts carries the danger of assigning responsibilities. Each word is important, and a poorly drafted clause may be considered unfair or invalid.

3-3-2- The export distribution contract

The exporting company may choose to focus product distribution in the export country by recruiting a wholesaler. If this is the case, it should draft a binding contract with the wholesaler.

3-3-3-The distribution export contract: definition

The export distribution contract will be signed by the two parties, and the clauses that are set out in this agreement can be negotiated. There is comfort in the ability to include desired clauses in your contract, but, of course, they must be valid.

3-3-4- The export distribution contract: specifics

The wholesaler will be self-employed and will be listed on the Registar of commerce. He/she will be their own boss with their own company.

Of course the wholesaler should have extensive knowledge of its market. The wholesaler can choose to rent an office, hire employees, or if authorized by the exporter, recruit sales agents.

This wholesaler will buy and will resell products from the British company.

The wholesaler assumes the responsibility of delivering the goods according to the choosen Incoterms.

The exporting company could ask its wholesaler to sign an exclusivity clause. This clause does not permit the wholesaler to sell similar products from other companies.