Transitioning From Web Developer to Comic Book Author:

Ending A Distribution Agreement

The party attempting to terminate the contract must give the other party as much notice as possible. This notice shall give the other party sufficient time to make further arrangements. In the absence of a specified period of time, as described in the termination clause of the agreement, some states require up to 90 days` notice for the termination of a distribution agreement. The agreement may also require one of the parties to compensate the other for income lost as a result of the termination. A supplier wants to keep control of its distribution network, with the ability to redefine zones, change product offerings, prices and sales targets. Although the possibility of modifying these aspects of a commercial agreement may be incorporated into a distribution agreement, a distributor will generally object to any modification to the extent that it attempts to redefine the commercial agreement entered into by the parties at the beginning of the relationship. A distributor will want to maintain the necessary flexibility to bring the best products to its customers, with a healthy profit margin, and in the event of termination or expiration of the distribution contract, the provisions set when the company was founded will become the main objective. Is the dismissal procedure in the process of being tendered, does it avoid legal involvement in disputes over anti-cartels and abuse of a dominant position? These issues can be addressed well in advance, provided, of course, that they are discussed at the beginning of the business relationship. Distribution agreements, like other commercial relationships, are not provided for indefinitely.

They should be able to be maintained as long as both parties have an agreement and the agreement complies with the applicable law, but should also allow the parties to terminate the agreement if it no longer serves their commercial purpose. A well-thought-out trade deal should foreshadow that it will end at some point. [1] See the consolidated version of the Treaty on the Functioning of the European Union of 30 March 2010, 2010 OJ L 337, 30.12.2010, p. 1. (C 83) 47 and Commission Regulation (EU) No 330/2010 of 20 April 2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to groups of vertical agreements and concerted practices – 2010, OJ L 201, 31.12.2010, p. 1. L 102/1 or similar Chinese competition law, antimonopoly law (promulgated by the Nat`l People`s Cong. Standing Committee, 30 August 2007, effective 1 August 2008), art. 1 (China). Often, sellers do not have written distribution agreements, but are dictated by the seller`s terms and conditions of sale for the delivery of goods. Greenaway Scott is exploring ways to terminate a distribution agreement subject to seller`s terms and conditions under UK law. When a supplier or distributor uses legal advice to create a new distribution contract, the first thoughts focus on customer-specific issues.

Is a boilerplate general contract sufficient or does the customer want/need a contract specific to their sector or business relationship? When reviewing a distribution agreement, the parties must have done their homework….