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What are the main features of this model?
An international business transaction requires a precise and detailed underlying contract. However, it can be expensive and time-consuming to draft such a contract oneself. The ICC Model International Selective Distribution Contract responds to the market’s need for a reliable and equitable template, providing a set of clear and concise standard provisions to organize a distribution structure for selling goods abroad through a network of qualified retailers.
Selective distribution agreements allow the exporter to better control the way its products are marketed by creating a direct link between the exporter and the retailers who sell its products to the final consumers. This approach may be preferable to the more common distribution or agency relationships in cases where the exporter needs to warrant a certain level and uniformity of sales service given to the consumer, for example where the retailer may need to have the expertise to give consumers specialist technical advice regarding technically sophisticated merchandise. Likewise, for products with an exclusive and high-end image, the producer may want to ensure that such products are sold only in shops having certain exclusive characteristics.
This model covers selection criteria, the distributor’s minimum purchase obligation, the supplier’s general conditions of sale, and after-sale service, among others. It provides a sound legal basis upon which parties can quickly establish an even-handed agreement acceptable to both sides.
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ICC Model Contract Selective Distribution
The ICC Model Contract “Selective Distribution” is intended for the marketing of products through a network of qualified retailers
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