Exclusive Distribution Agreement Sample Philippines

PURPOSE: This agreement is accreditation, the style consultant, as an independent distributor, who can benefit from the privilege of representing the company in the realization of direct distribution and mlm in the distribution of products, as well as the benefits, incentives and rewards provided by the company. The waiving or non-exercise by either party of a right under this agreement is not considered to be a waiver of another right or remedy to which the party may be entitled. 1. The manufacturer should be alert to the risks associated with establishing an exclusive long-term relationship with a distributor. Most of these relationships benefit the distributor, not the manufacturer. Notable cases are Coke, Pepsi, McDonald`s and others who have had to buy back their rights to these parts at considerable cost. The opposite applies to distributors. It is generally in their best interest to acquire as many of these agreements as possible, in the hope that one or two will be turned into a gold mine that a Coke, Pepsi or McDonald`s franchise has made. Unlike the exclusive distribution contract, the submission of the non-exclusive distribution agreement allows the manufacturer to grant several companies the distribution rights for the resale of the products or services concerned in a given market. If you enter into a typical non-exclusive agreement, you can count on competition between different distributors when selling products and services.

While it may be suspected that non-exclusive distributors do not have the overall comfort of the exclusive relationship, non-exclusive opportunities offer substantial competition. This, in turn, proves to be a great motivation for the units concerned. Another advantage of working in a typical non-exclusive agreement is that companies are able to share the business development process within a certain target market with other non-exclusive distributors or resellers. This significantly reduces marketing and start-up costs. B. The manufacturer may terminate this contract if it informs the distributor of one of the following events: (1) the distributor`s failure to fulfill or perform any of the distributor`s obligations, obligations or responsibilities in this agreement, which have not been cured by the manufacturer within 30 days; (2) any transfer of interest in this agreement or the transfer of obligations from the distributor by the distributor without the manufacturer`s written consent; (3) any voluntary or non-voluntary person, voluntary or involuntary, through one right or another, with a substantial interest in direct or indirect ownership or modification of the distributor`s managers; (4) For some reason, the distributor did not comply with its normal business; (5) conviction in a competent court of the distributor or a major partner, principal responsible or major shareholder of the distributor for violation of the law which, according to the manufacturer, infringes the operation or activity of the distributor or the good reputation of the distributor, the goodwill or reputation of the manufacturer, the manufacturer`s products or the distributor; or (6) Filing fraudulent reports or statements by the distributor with the manufacturer, including, but not limited to, claims of refund, credit, rebate, inducement, surcharge, rebate, refund or other payment by the manufacturer.