Many businesses work with agents or through distributors to sell their products, rather than sell to customers direct.
Both types of agreement need to be drafted to ensure that key issues such as exclusivity, territory, payment, ownership of intellectual property and rights on termination are adequately covered.
Agency agreements are also governed by the Commercial Agents (Council Directive) Regulations 1993. The agency contract will need to take account of these in order to be legally binding. There are particular provisions that apply on termination relating to earnings that need to be carefully thought through.
Distribution agreements are subject to competition law restrictions which will need to be considered in terms of exclusivity, territory and pricing controls.