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Agent or Distributor Agreement Checklist BCS 2014

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For SMEs knowing where to start and what to include or not include in a Agent (Agency) or Distributor agreement can be both daunting and time consuming. This checklist, although not exhaustive, contains some oof the typical content you need to consider when drawing up your agreement.

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Agent or Distributor Agreement Checklist BCS 2014

  1. 1. International Marketing & Export Promotion Agency or Distributor Agreement Checklist Bellevue Creative Solutions Ltd. , 5 Banta Na Bearu, Athy, Co.Kildare. Tel: 0872499833
  2. 2. Typical Content The next Couple of slides define some of the typical content you need to consider when putting an Agent or Distributor agreement in place in your export markets…… Bellevue Creative Solutions Ltd. , 5 Banta Na Bearu, Athy, Co.Kildare. Tel: 0872499833
  3. 3. Agreement Checklist  Parties – state legal entities of parties involved  Territory – define geographic or customer related territory  Products involved – description, catalogue  New Products – policy for new products  Period of Agreement – depends on the product, usually three years with right of renewal. A termination clause should be included – so many months’ notice by either party and anytime by mutual agreement – always in writing.  Probationary period – one year with review of performance after six months  Prices – refer to the price list  Discounts – promotional discounts and responsibilities. The agreement should include the principles to work on and the detail  Commission payable – rate and timing.  Method of payment and the timing  Minimum order requirements  Production scheduling and lead-times  Exporter to sell through distributor in territory exclusivity  Exporter to refer enquiries to distributor  Distributor not to re-sell out of territory Bellevue Creative Solutions Ltd. , 5 Banta Na Bearu, Athy, Co.Kildare. Tel: 0872499833
  4. 4. Agreement Checklist (Contd)  Restraint of trade following termination of agreement  Spares and Stock – distributor to hold stock/spares but not an agent  Communication costs – each party to cover their own costs  Performance measures – sales targets value or volume?  Training and technical support  Samples – who pays? How much free of charge?  Advertising and promotion  Ownership of brand  Distributor to protect trademarks, patents, etc.,  Exchange of information  Procedures for defective goods and returns  Distributor to keep books of accounts  Relationship management – contact list, official addresses  Confidentiality  Early termination for breach of agreement  Transfer of rights – distribution rights cannot be transferred without permission  Country in which legal action/arbitration to take precedence  Arbitration - a last resort Bellevue Creative Solutions Ltd. , 5 Banta Na Bearu, Athy, Co.Kildare. Tel: 0872499833

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