A Supplier may entrust the distribution of its products to an Agent in the context of a Commercial Agency or a Commission Agency Agreement. It may also set up a preferential relationship with a Reseller by means of an Exclusive Purchasing Agreement, a Selective Distribution Agreement, an Exclusive Distribution Agreement or a Franchise Agreement.
Overview ( Contents + )
- Distribution Agreements
- Introduction
- Representation with a View to Sales - Commercial Agency (Named Principal)
- Cooperation with a View to Resale - Exclusive Purchasing
- The Application of Competition Law
- The Basics of EC Law Regarding Distribution Agreements
- Prohibited Agreements
- Agreements to which Article 101-1 is not applicable - Agreements of Minor Importance
- Exemptions - Block Exemptions
- Method for Checking
- Sanctions
- Commission Agency (Undisclosed Principal)
- Selective Distribution
- Exclusive Distribution
- Franchise
- Agency Agreements
- Individual Exemptions
Incidental Documents ( Contents + )
- Declaration Regarding the Legal Existence of a Foreign Company
- Powers to Represent
- Compulsory Precontractual Information
- Comments
- Plan of presentation for the information document
- Certificate of receipt and confidentiality undertaking
- Reproduction of article 1 of the Décret N 91-337 of 4 April 1991 (list of compulsory information)
- Agreement to a Loan of Equipment
- Agreement to Lend Money
- Surety
- Individual Confidentiality Undertaking
- Individual Undertaking Not to Compete
Commercial Agency ( Contents + )
Introduction (Commercial Agency)
- General Characteristics
- The Organisation of the Agreement
- Provisions under French Law
- The Effects of the Agreement
- The Duties of the Commercial Agent
- The Duties of the Principal
- Termination of the Agreement
- The Reasons for Termination
- The Effects of Termination
- Law on Anti-Competitive Practises
- EC Law
- Domestic Law
- Tax Aspects
Checklist
Commercial Agency Agreement
(comments - clauses and variations)
- Identification of the Parties
- Recitals
- Purpose of the Agreement
- Changes to the Range of Products
- Task of the Agent
- Sales Quota/li>
- Sales Forecasts
- Information
- Marketing
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
A representative may be required to intervene as Agent for and on behalf of a Supplier. The contract then usually takes the form of a Sales Agency Agreement. The Supplier has total control over sales and establishes, by means of the Agent, direct relations with resellers or the end client, which becomes its client. The Agent benefits from protective provisos during the course of the contract execution and on termination.
Commission Agency ( Contents + )
Introduction (Commission Agency)
- General Characteristics
- The Organisation of the Agreement
- Provisions under French Law
- The Effects of the Agreement
- The Duties of the Commission Agent
- The Rights of the Commission Agent
- The Principal's Guarantees (Bailment)
- Special Terms of the Commission Agent's Operation/li>
- Termination of the Agreement
- The Reasons for Termination
- The Effects of Termination
- Law on Anti-Competitive Practises
- Tax Aspects
Checklist
Commission Agency Agreement
(comments - clauses and variations)
- Identification of the Parties
- Recitals
- Purpose of the Agreement
- Changes to the Range of Products
- Terms of Sale
- The Agent's Right to Buy on its Own Account
- Sales Quota
- Sales Forecasts
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
A representative may be required to intervene as a Commission Agent. It shall then act in its own name but on behalf of the Supplier-Principal. The relations between the Principal and the Commission Agent are usually unknown by the end clients. The Commission Agent is deemed to be a trader selling the Principal’s products. The Principal controls the sales terms, but does not establish any relations with the end client who remains the Commission Agent’s client.
Exclusive Purchase ( Contents + )
Introduction (Exclusive Purchasing Agreement)
- General Characteristics
- The Organisation of the Agreement
- Provisions under French Law
- The Effects of the Agreement
- The Duties of the Exclusive Supplier
- The Distributor Duties
- Termination of the Agreement
- The Reasons for Termination
- The Effects of Termination
- Law on Anti-competitive Practises
- Exclusive Purchasing and Domestic Competition Law
- Exclusive Purchasing and EC Competition Law
- Tax Aspects
Checklist
Exclusive Purchasing Agreement
(comments - clauses and variations)
- Identification of the Parties
- Recitals
- Purpose of the Agreement
- Changes to the Range of Products
- Legal Relationship Between the Parties
- The Distributor's Orders
- Supplier Delivery
- The Distributor's Obligation to Purchase
- Supplier Delivery Obligation
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
Managing the relationship between a Supplier and a Distributor may be effected by the formula of an Exclusive Supply Agreement (or: Exclusive Purchasing Agreement): the reseller undertakes to purchase solely, or almost exclusively the products from the Supplier to the exclusion of competing products. In return, the Supplier provides certain economic advantages that non-exclusive purchasers do not have. The contract sets the terms under which further sales-purchases shall take place. This kind of arrangement allows a Supplier to set up a stream of business that ensures an outlet for its products.
Selective Distribution ( Contents + )
Introduction (Selective Distribution)
- General Characteristics
- The Organisation of the Agreement
- Provisions under French Law
- The effects of the agreement
- The Duties of the Distributo
- The Duties of the Supplier
- Termination of the Agreement
- The Reasons for Terminatio
- The Effects of Termination
- Law on Anti-Competitive Practises
- Selective Distribution and Domestic Competition Law
- Selective Distribution and EC Competition Law
- Tax Aspects
Checklist
Contrat de distribution sélective
(comments - clauses and variations)
br />
- Identification of the Parties
- Recitals
- Purpose of the Agreement
- Changes to the Range of Products
- Legal Relationship Between the Parties
- The Distributor's Orders
- Supplier Delivery
- The Distributor's Obligation to Purchase
- Supplier Delivery Obligation
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
A Supplier may control the terms of resale for its products (after sales services, warranty, consulting, etc.) thanks to Selective Distribution, so that their quality and reputation is preserved. The Supplier selects the resellers that seem to it to be suitable to market its products, that suitability being assessed based on objective criteria (skills, facilities, etc.) and sometimes quantitative criteria also (limited number of distributors because of catchment areas or production capacities), and any distributor that does not meet those criteria will not be supplied. A selected reseller must undertake in return to comply with the quality demands for the sale of the products that are set by the Supplier.
Exclusive Distribution ( Contents + )
Introduction (Exclusive Distribution)
- General Characteristics
- The Organisation of the Agreement
- Provisions under French Law
- The Effects of the Agreement
- The Duties of the Exclusive Distributor
- The Duties of the Supplier
- Termination of the Agreement
- The Reasons for Termination
- The Effects of Termination
- Law on Anti-Competitive Practises
- Exclusive Distribution and Domestic Competition Law
- Exclusive Distribution and EC Competition Law
- Tax Aspects
Liste de contrôle
Exclusive Distribution Agreement
(comments - clauses and variations)
- Identification of the Parties
- Recitals
- Purpose of the Agreement
- Changes to the Range of Products
- Legal Relationship Between the Parties
- Distributor's Obligation to Purchase
- Distributor's Orders
- Supplier Delivery Obligation
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
A Supplier-Principal may entrust a Distributor-Concessionaire with a territory where no other distributor shall be supplied. In return the Concessionaire undertakes not only to comply with the quality requirements for marketing the products set by the Supplier but also to market the Supplier’s products only, or at the least, to market set quantities of those products.
Franchise ( Contents + )
Introduction (Franchise)
- General Characteristics
- The Organisation of the Agreement
- Provisions under French Law
- The Effects of the Agreement
- The Duties of the Franchisor
- The Duties of the Franchisee
- Termination of the Agreement
- The Reasons for Termination
- The Effects of Termination
- Law on Anti-Competitive Practises
- Franchise and Domestic Competition Law
- Franchise and EC Competition Law
- Tax Aspects
Checklist
Franchise Agreement
(comments - clauses and variations)
- Identification of the Parties
- Recitals
- Purpose of the Agreement
- Condition (Precedent or Subsequent)
- Legal Relationship Between the Parties
- Entry Fee
- Royalties
- Know-How Transfers
- Changes in Know-How
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
- ......
A distributor or a Supplier who has know-how in the marketing of products may propose to Distributors that they apply that know-how by marketing the same products under the same terms and using the same brand, to experience the same marketing success as they do, in accordance with a Sales Franchise Agreement (or: Franchise Agreement).