Distributor & Agency Agreements
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Distributor & Agency Agreements in Gothenburg and Kungsbacka
As a manufacturer, there are different ways to bring your product to the market. For example, you can use an agent or a distributor. Whatever form of distribution you choose, it is important to have well-thought-out agreements that govern the co-operation.
At Glimstedt’s offices in Gothenburg and Kungsbacka, we have extensive experience of assisting clients with retail agreements, distributor agreements and agency agreements. We help our clients to feel secure in their entrepreneurship.
We help our clients feel secure in their business ownership
Distributor or Agent – What’s right for your business?
As a manufacturer, it is important to choose the form of distribution that suits your business. The most common approach is to partner with a retailer or commercial agent. Both a distributor and a commercial agent are independent from the manufacturer.
A distributor buys the manufacturers products, stores them in a warehouse and then resells the products in its own name to other distributors, retailers or consumers. Distributors make their profit through the margin between the purchase and selling price.
A commercial agent, on the other hand, acts in the name of the principal (the manufacturer) and on behalf of the principal. This means that the commercial agent does not enter into a contract with the counterparty. The commercial agent only mediates the contact between the principal and the counterparty. The commercial agent is paid an agreed commission, often based on the volume of sales.
Draft a clear contract for the chosen form of distribution!
The relationship between principal and distributor is not regulated by law. This means that the parties have no legal protection. For this reason, it is important to have a clear written contract that governs the terms and conditions that will apply between the parties. A distributor contract (also known as a retail contract) often contains terms governing purchases, warranties and the collaboration between the parties. It may also contain provisions that specify when and how the terms of sale may be changed and how the collaboration can be terminated.
Unlike the relationship between distributor and principal, the relationship between principal and commercial agent is governed by law. However, the legislation is non-mandatory, which means that the parties may agree on other terms than those set out in the law. It is therefore common for the parties to draw up an agency agreement to supplement the legislation.
Whatever form of distribution you choose for your business, it is important to have an agreement governs the terms of the co-operation to avoid unexpected consequences.
Do you need help with distributor or agency agreements?
At Advokatfirman Glimstedt we have a comprehensive legal expertise and offer consultation for manufacturers, distributor and commercial agents.
We can also help you set up agency and distributor agreements. We help you feel secure in your entrepreneurship!
Our Expert Lawyers in Commercial Law – Gothenburg and Kungsbacka
Niclas Elison
Martin Wahlin
Otto Hansson Johansson
Erik Lindskog
Advokatfirman Glimstedt has eleven offices in Sweden and three in the Baltic States. Visit www.glimstedt.se to learn more about our entire business.