A distribution contract is a contract for the distribution of products purchased by a manufacturer. The manufacturer is the supplier and the distributor serves as distributor and seller. A producer may have an exclusive agreement with an individual distributor or enter into several distribution agreements. Distribution agreements generally include trademark licensing conditions, exclusivity or non-exclusivity conditions, marketing conditions, descriptions of the geographic area covered and terms relating to the duration of the contract. This letter template is intended to assist in the drafting of the termination of a commercial contract with another company. It contains key elements to avoid misunderstanding and to end a partnership on consensual terms. In accordance with the clause [indication of the number of clause containing the termination clause], please take this letter as [[[z.B 90] days or immediately] termination of the contract. [The agreement therefore expires on [date].] [This is not due to a breach on your part on your part, we simply inform you that we will no longer need [company name] services from [date]. With this notification, we respect the minimum termination period required by our agreement. Your company has provided us with a good service in the past, but we have chosen to terminate our business contract for [reasons].
Disclaimer: This model for business contract termination letters must contain general guidelines and should be used as a reference. It cannot take into account all relevant local, state or federal laws and is not a legal document. Neither the author nor workable.com assumes legal responsibility for the use of this letter. If necessary, seek qualified advice before deployment. A distribution agreement allows a distributor to transport or resell products purchased by a manufacturer. The manufacturer supplies the products and the distributor acts as a seller, either as a wholesaler or as a distributor. The distribution agreement may be exclusive, with a single distributor using a manufacturer for a particular product or region. The agreement may also allow several distributors to collaborate with several manufacturers. The manufacturer generally states the terms of the agreement, including all marketing tactics or product licensing procedures, and the distributor agrees to comply with these conditions. A manufacturer relies on a distributor to transport a product to its customers. The distributor depends on the manufacturer`s revenues to support its activities.
Both parties must agree on how the distributor will transport the products and how much the manufacturer will pay for the service. Where these agreements are no longer manageable, the parties can terminate the distribution contract and either establish a new agreement or terminate the relationship. The relationship between a producer or seller of products and its distributor is essential. But it is rare that these relationships remain unchanged, even if they are successful. Parties may have different objectives or are unable to achieve goals over time. The end of a distribution relationship does not have to be painful. Both parties can terminate a distribution agreement in a mutually beneficial manner and prepare the terms for a new relationship if circumstances change again. In the absence of a termination clause in the distribution contract, the manufacturer and distributor may negotiate a review of the current agreement. While the parties still view this relationship as profitable and rewarding, the renegotiations show that they can still cooperate, although their circumstances have changed since the original agreement was signed. These efforts also show that even if they fail to reach a new agreement, the parties can cooperate to avoid costly legal action.