Does anyone have a distribution agreement template for trade with India?

Question

Greetings,

I am looking for a distribution agreement template that I can use for a business registered in the UK trading with India. Does anyone have any leads and/or links I could use as reference points?

Also, any advice would be much appreciated.

Many thanks,

~Mahbir.

Answer

Hi Mahbir,

Thank you for your question – I hope you receive some useful responses shortly.

In the meantime, our article on structuring your agreements with distributors and resellers might be useful – http://opentoexport.com/article/distributor-and-reseller-agreements-what-you-need-to-know-1/

Best wishes,

William

Answer

Personally, I would avoid using any kind of template for a distribution agreement.

Every agreement is different, and the temptation is to use a ‘one size fits all approach to formalising such agreements, which can easily lead to problems. I know it’s annoying, but in situations like this it really is best to take qualified legal advice over the matter. I would commend the advice given by William above and in particular the link which can give good guidance about the pertinent points that need to be covered.

Answer

I would have to agree with Tim Hiscock. A template should be avoided unless you are professionally trained, mainly because of the one size fits all approach which Tim mentions and which is entirely inevitable with templates

It is important to have an Agreement which will actually work for you. The purpose of written agreements such as distribution agreements and terms of business is to ensure that the true nature of the relationship is captured clearly in writing setting out the respective rights, obligations and responsibilities of the parties, including in some cases, timescales.

As well as recording the agreement between the parties, the document should also make provision for the resolution of disputes in the event that one does arises, therefore assisting in resolution of such disputes and in many cases reducing costs. Such dispute resolution clauses may include the requirement to seek alternative (and potentially less expensive and cumbersome methods of resolving disputes) methods such as arbitration and mediation before bringing legal proceedings which as we all know is expensive business. Such an agreement should also contain a jurisdiction clause. In this case, you have entities in the UK dealing with another in India. It is important for the parties to ensure that there is a choice of jurisdiction clause contained within the agreement which may or may not be present within a template and even if it is present, carefully considered advice would still be necessary to ensure that a correct choice is made taking into consideration the objectives of the parties.

In conclusion, it is important for you to determine the value of the transaction versus the cost of obtaining professional advice. You should also take into consideration potential losses to you if no advice is obtained and things do not go according to plan.

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