Who will use this document?
An individual or company who requires a distributor of products or services in South Africa or overseas.
Key features:
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suitable for sale of goods or easily adaptable for services;
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appropriate for distributor in South Africa or further a field;
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very flexible – can be easily adapted to suit individual requirements of either or both parties;
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comprehensive provisions provide ideas for you to mould to suit you;
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real law in plain English.
Why use this document:
For merchants and distributors the deal you negotiate is comparatively free of regulation. You can therefore make just the deal you want. This document helps you to do this by providing many ideas. It is also very flexible.
A poorly worded distribution agreement provides enormous scope for misunderstanding and financial loss. This is particularly so for the merchant, who may have to wait a considerable time for payment. The use of an agreement like this one will prompt careful thought and discussion and enable you to create an advantageous arrangement.
This document includes provision for:
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merchant’s conditions of supply;
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restrictions on merchant sales outside the agreement;
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minimum sale requirements;
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restrictions on distributor selling competitive products;
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distributor’s marketing obligations
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sales and other reports and information exchange;
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terms and method of payment;
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passing of risk and title;
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termination and the aftermath;
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mutual preservation of confidentiality;
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protection of merchant’s intellectual property used by the distributor;
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limitation of merchant liability;
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appropriate legal provisions - warranties, exclusions, indemnities, etc.
