Distribution Agreements in Ireland
Distribution Agreements in IrelandUpdated on Monday 09th January 2017
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The distribution agreement in Ireland refers to a commercial contract signed by at least two parties – a vendor and a distributor, which stipulates the rights and obligations of each entity, as well as the conditions in which the respective products or goods will be distributed. Some of the most important aspects of a distribution agreement in Ireland refer to the period for which the contract is available, the terms and conditions for the supply of products and the areas in which the contract is valid. Our Irish lawyers can offer legal assistance to those who want to draft a distribution agreement.
What is a distributor in Ireland?
The distributor is the legal entity which received the right to distribute the products of another company, following specific regulations. The distributor will sell the respective products to his or her customers, but it is important to know that the distributor will assume the liability for this transaction.
Selling products and goods through a distribution agreement can have several advantages, for both the supplier and the distributor. In this sense, we mention the following:
• the risks associated with the transaction will be covered by the distributor, as the supplier can’t be held responsible for any liability related to the products;
• the distributor will find ways to distribute and sell the entire stock of products;
• the enactment of a distribution agreement will provide benefits for the supplier, in the sense that he or she will not be required to establish a place of business in Ireland, thus reducing the costs associated with having a business here.
Our lawyers in Ireland can offer more details on the legal provisions that are compulsory when drafting a distribution agreement.
Types of distribution agreements in Ireland
Parties involved in a supply- distribution relation can establish various types of contracts, as follows:
• exclusive distribution agreement – the supplier will enter a contract with only one distributor on the respective territory;
• sole distribution –the supplier will provide his products to a single distributor, but will retain the right to promote the products on the same territory;
• non-exclusive distribution –appointing more distributors;
• selective distribution – the supplier will have the right to select his distributors, provided that they meet several criteria.
Businessmen who are interested in finding out more details on the distribution agreement in Ireland are invited to contact our Irish law firm for legal assistance.