Product

Well drafted distribution agreements will include a definition or schedule of the specific products which the distributor is entitled to sell. Depending on the nature of your business, it may be that you only want a distributor to sell a particular product, or list of products.

From your perspective as a manufacturer, a detailed product specification will ensure that the distributor is not modifying or changing the product it sells to the end user, and from a distributor’s perspective, they will want to ensure they are selling the most up to date versions of the product.

Your distributor will want the ability to purchase and sell any new products you might develop in the future. As a supplier you may wish to restrict this and limit the types of products available in different areas. These restrictions can be negotiated between parties and incorporated into the agreement with a clear definition of the products being sold.

When considering your distribution arrangement, spend time considering the types of products to be distributed by the other party, and outline exactly what is and is not included. It may also be advisable, as a manufacturer, to retain the right to amend the list of products as and when necessary, though you can discuss this with your solicitor in detail.

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Author
Robert Capper
Partner, Head of Commercial Team and Advanced Manufacturing
Direct Dial: +44 (0)1905 744814
Mobile: +44 (0)7909 970 323
Email: rcapper@hcrlaw.com