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Simple Exclusive Distribution Agreement for the United Kingdom

Simple Exclusive Distribution Agreement Template for England and Wales

An Exclusive Distribution Agreement under English and Welsh law establishes a contractual relationship where a supplier grants exclusive rights to a distributor to sell specified products within a defined territory. The agreement outlines the terms of exclusivity, supply arrangements, minimum requirements, and the obligations of both parties. It incorporates provisions compliant with UK competition law and addresses key commercial terms including pricing, delivery, and quality standards.

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What is a Simple Exclusive Distribution Agreement?

A Simple Exclusive Distribution Agreement is used when a supplier wishes to appoint a single distributor as their exclusive seller within a defined territory under English and Welsh law. This document establishes the framework for the exclusive distribution relationship, including territory limitations, product specifications, pricing structures, and performance obligations. It's particularly useful for businesses looking to expand their market presence through dedicated distribution channels while maintaining control over their product distribution. The agreement must comply with UK competition law and typically includes provisions for minimum purchase requirements, marketing obligations, and termination rights.

What sections should be included in a Simple Exclusive Distribution Agreement?

1. Parties: Identification and details of the contracting parties

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Appointment and Territory: Scope of distributorship and territorial limitations

5. Exclusivity Terms: Nature and extent of exclusive rights granted

6. Supply Terms: Conditions for ordering, delivery, and payment

7. Obligations of Distributor: Distributor's key responsibilities and commitments

8. Obligations of Supplier: Supplier's key responsibilities and commitments

9. Term and Termination: Duration and termination provisions

What sections are optional to include in a Simple Exclusive Distribution Agreement?

1. Minimum Purchase Requirements: Specific volume commitments, used when supplier requires guaranteed volumes

2. Marketing and Promotion: Marketing obligations and restrictions, used when specific promotional activities are required

3. After-Sales Service: Service requirements, used for technical or complex products

4. Non-Compete: Competition restrictions, used when protecting market position

What schedules should be included in a Simple Exclusive Distribution Agreement?

1. Products: List of products covered by the agreement

2. Territory: Detailed description of geographical territory

3. Prices and Payment Terms: Pricing structure and payment conditions

4. Minimum Purchase Quantities: Specific volume requirements if applicable

5. Technical Specifications: Product specifications and standards

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
























Clauses



























Industries

Competition Act 1998: Primary UK legislation governing competition law, including Chapter I prohibition on anti-competitive agreements and vertical agreements block exemption. Essential for ensuring the distribution agreement complies with competition law requirements.

Sale of Goods Act 1979: Fundamental legislation governing sale of goods in UK, covering provisions for title, quality, and fitness for purpose, plus implied terms in sale contracts.

Consumer Rights Act 2015: Key legislation for distribution agreements involving consumer sales, covering product quality and safety requirements.

English Contract Law: Common law principles governing contract formation, performance, and enforcement, including principles of agency law relevant to distribution relationships.

Retained EU Vertical Agreements Block Exemption Regulation: Post-Brexit retained EU law governing vertical agreements, including market share thresholds, hardcore restrictions, and permitted territorial restrictions.

UN Convention on International Sale of Goods (CISG): Although UK is not a signatory, may be relevant when dealing with international parties in distribution agreements.

Product-Specific Regulations: Regulatory requirements specific to the type of goods being distributed, which must be considered in the agreement terms.

UK GDPR: Data protection regulations that must be considered if the distribution agreement involves processing of personal data.

Export/Import Regulations: Relevant trade regulations and requirements if the distribution agreement involves international trade.

Intellectual Property Laws: Laws protecting trademarks, patents, and other IP rights that need to be addressed in the distribution agreement.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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