Drafting Distribution Agreements in Germany
Drafting Distribution Agreements in GermanyUpdated on Friday 22nd July 2016
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Businessmen operating on the German market, who want to distribute their products or services to another party which is situated in the European Union or in another jurisdiction must sign a distribution agreement. The distribution agreement should be drafted respecting a set of rules imposed by the local authorities, specifying the object of the contract, the terms established between the parties, the obligations and rights of the parties involved, the conditions to terminate those specific commercial relationships and other provisions. Our team of German attorneys can offer assistance on how to draft a distribution agreement in accordance with the legal requirements.
What is a distribution agreement?
The distribution agreement is signed between two parties: the provider of the goods and services – named “the supplier”, and the legal entity or person – the “distributor”, who has received the right to market and distribute the products and services of the supplier.
The local legislation prescribes that a supplier can sell on a market his or her services and products indirectly, by entering into a commercial agreement with an agent, distributor or franchises.
The distribution agreement should state that the distributor assumes the risks associated with this activity and that the legal entity representing the distributor should also represent the interests of the supplier; our team of German lawyers can offer more details on the minimum requirements of a distribution contract.
Legislation referring to distribution agreements in Germany
The German legislation does not provide a complete legal framework to regulate the distribution agreements, but such contracts should respect the provisions of several laws.
When the parties will draft the distribution agreement, it is important to know that its provisions should not interfere with the stipulations of the free competition. Such documents should respect the rules applicable under the Antitrust law and of the Act Against Restraints of Competition.
Businessmen interested in receiving further information on the distribution agreements in Germany can address to our German law firm.