Traders negotiating international distribution agreements find the task much easier if they use uniform rules.
To meet this need, ICC has published a revised set of its uniform contractual rules, the ICC Model Distributorship Contract. The rules apply to agreements under which the distributors act either as buyers and resellers or as importers who organize distribution in the country in which they operate.
Distributorship contracts are one of the most frequently used means for organizing the distribution of goods in a foreign country. Almost every company engaged in international trade has some distributors abroad, which means that most exporters will be faced with drafting an international distributorship agreement at some point. But one of the difficulties that traders face when drawing up contracts is the lack of uniform regulations.This means that parties must refer primarily to the rules set out in their agreements, which in turn makes the careful drafting of such contracts vital.
The ICC Model Contract on Distributorship provides a uniform contractual framework which incorporates the prevailing practice of international trade. It specifically applies to agreements under which the distributors act either as buyers and resellers, or as importers who organize distribution in the country in which they operate. This new revised version takes into account recent developments in the laws affecting distribution. It includes a USB key which contains the full text of the model and its annexes, permitting you to easily adapt the contract to your specific case. If parties have no need to draw up a special contract of their own, they can use the entire model, which has been drafted to assure balance for both sides.
The ICC Model Contract “Selective Distribution” is intended for the marketing of products 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 consumer.
This model covers selection criteria, the distributor’s minimum purchase obligation, the supplier’s general conditions of sale and after-sale service. It provides a sound legal basis upon which parties can quickly establish an even-handed agreement acceptable to both sides. It saves resources for companies and their legal advisers.