Termination Of Exclusive Distribution Agreement

Under state exclusions, the Federal Cartel Service considers that distribution is generally permitted if all the following conditions are met: 1. Is the distribution specifically regulated by national law? Are there specific rules or definitions for: in most cases, the distributor acts as an intermediary between the supplier and the customer only in the economic sense of the term. It remains legally independent because it acts in its own interest and at its own expense and has legal consequences for itself. For these reasons, Russian agency relations legislation does not apply to distribution. These rules, which generally apply to delivery agreements, also apply to distribution. In other words, the distributor becomes the owner of the goods sold by the supplier. When purchasing the goods from the supplier, the distributor acts as an independent seller of the goods to its customers. Note that agreements to avoid double taxation may set other criteria for determining whether a foreign company is permanently represented in Russia. In the event of a serious infringement, the agreement is deemed terminated from the date of receipt of the refusals written by the other party, unless the notice provides for another consequence, as previously agreed by the parties.

The proof of injury could be relatively simple if a distributor exclusively markets products from a single supplier and does not conduct other activities. In such cases, it may be possible to prove the damage through distribution records. 11. Does a distributor have an unspoken license to exploit the supplier`s intellectual property rights in carrying out its obligations under the distribution contract? Payment of a royalty (loss refund) to the distributor in the event of termination. All of these options may include the supplier`s standard terms of sale in the sales contract. Dutch law does not have a specific legal regime for distribution agreements. This means that sales contracts are subject to general contract law. Is there specific regulation of competition or cartels and abuse of dominance with respect to exclusive and selective distribution? Describe it briefly.

The Dutch civil code is based on the principle of contractual freedom: suppliers and distributors are bound only by the rules they have agreed with each other. However, there are binding rules for distribution agreements. Most of them come from competition rules. Despite the absence of specific legislation on distribution agreements, Dutch jurisprudence is taking a fairly strict approach to a number of specific issues. The principle of „adequacy and fairness“ that permeates Dutch contract law requires the parties to treat each other in a reasonable and fair manner. Exclusive distribution agreements generally include service obligations for the distributor. B, for example, a provision on minimum sales or revenue per year. On 3 January 2018, the Swiss Supreme Court issued a new judgment on the termination of an exclusive distribution contract (4A_27/2018 judgment).

The decision focuses on evidence of injury related to the early termination of a distribution contract.