For more advice on agency agreements on this part of the site. Unlike a sales agent, a sales agent does not have the right to bind the supplier, but can market and promote the supplier`s product to potential customers. If a customer wishes to make a purchase, the supplier concludes the contract. A distribution agreement is used when a supplier does not have a presence or representation in a particular market or country. It is important to have an agreement between the supplier and the distributor so that the conditions between the parties are clear. As a result, November 647/5 of 2013 found the same differences as the March 15 Supreme Court decision. The main point is that the differences between the two contracts cannot be resolved by analogy of the agency contract law. The analogy should only be applied if there is a reason to support it in these agreements. The protection of brand, mental protection, reputation and control are generally important considerations in the development of a distribution agreement. Other important legal areas are: a distribution agreement has similarities with an agency agreement. However, the main difference is that the distributor enters into the contract with the end user (customer) in its own name and the manufacturer is not involved, unless the warranty or liability of the product is established.
The role of an agency contract and a distribution contract is fundamental to the sale of products, but not everyone knows the difference between them and, according to legal criteria, the differences between the two contracts are significant. So, to understand what agency and distribution agreements are, we must first define any type of agreement. It is important to make it clear whether the relationship between the supplier and the intermediary is a distribution agency or company. The lack of a distinction between terms can lead to unnecessary litigation. Garden furniture and barbecues: developing agency contracts for distribution by garden furniture agents and barbecues throughout the UK and participated in negotiating compensation to agents who did not have a written agreement. Both teaching and case law have marked the agreements, so we have two very different treaties, since they (1) have different objectives and (2) different regulations. An agency relationship exists when one party (the agent) has the permission of another party (the supplier) to receive orders from a third party (the client) or to establish a legal relationship between the supplier and the client. The difference is that the agent acts in the name of principle, whereas a distributor probably acts on his own behalf, but has a contractual relationship with the principle of buying certain goods and putting them directly on the market with restrictions.