If you need lawyers for a distribution agreement or agency agreement, please contact us. We have a lot of experience in development, negotiation and advice, even though disputes have been settled on the basis of existing contracts of this type. It is important to make it clear whether the relationship between the supplier and the intermediary is a distribution agency or company. The lack of a distinction between terms can lead to unnecessary litigation. For more advice on agency agreements on this part of the site. In addition, the 1993 commercial agent regulations apply to contracting parties, provided there is an agency relationship. This is important and involves a number of provisions relating to the relationship. This note does not deal in detail with the regulations and it is appropriate to seek advice first and during and before the termination of a relationship is considered. Lawyers for the agency agreement or distribution agreement or distribution agreement? As part of a distribution agreement, the supplier or manufacturer sells products directly to the distributor, who then resells the products to its customers by adding a margin to cover its own costs and profits. An agency relationship exists when a party (the agent) has the right to have an agency relationship, if one party (the agent) has the permission of another party (of the supplier) to receive orders from a third party (the client) or to establish a legal relationship between the supplier and the client. The difference is that the agent acts in the name of principle, whereas a distributor probably acts on his own behalf, but has a contractual relationship with the principle of buying certain goods and putting them directly on the market with restrictions. For example, in the case of AMB Imballaggi Plastici SRL/Pacflex (1999), Pacflex asserted that trade between the two parties was done under a commercial agency contract.

They therefore considered that they were entitled to compensation under the termination of that contract. However, the Tribunal found that the trade was conducted on the basis of sale and resale and that it presented a mark to end-users. This cast doubt on whether the agreement was really an agency and not a distribution company. While a representative does not enter into its own contracts with customers, the distributor is required to enter into contracts with the supplier and its customer. Another difference between the agent and the distributor is that the distributor takes a greater financial risk than the first. However, this is generally reflected in the resale margins of the product, which are generally higher than the commission to be paid to a representative. The greater the financial risk to the trader, the higher the profit margin.