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The Exclusive Distribution Letter is used in the South African market when companies wish to establish a formal exclusive distribution relationship without the complexity of a full agreement. It is particularly suitable for arrangements where the commercial terms are straightforward and both parties seek a clear but concise documentation of their relationship. The letter format provides flexibility while still covering essential elements such as exclusivity terms, territory definitions, and core obligations. This document type is commonly used for new distribution relationships or when formalizing existing arrangements, ensuring compliance with South African competition law and commercial regulations. The Exclusive Distribution Letter typically includes key commercial terms, duration, termination rights, and basic operational requirements, making it an efficient tool for businesses expanding their distribution networks in South Africa.

1. Letterhead and Date: Company letterhead, date, and recipient details

2. Opening Salutation: Formal greeting to the recipient

3. Purpose Statement: Clear statement that this letter confirms the appointment as exclusive distributor

4. Products: Definition of products covered by the distribution rights

5. Territory: Clear definition of the geographical area of exclusive distribution

6. Duration: Term of the distribution arrangement and any renewal provisions

7. Exclusivity Terms: Scope and nature of exclusivity, including any limitations

8. Key Obligations: Core responsibilities of both parties including minimum purchase requirements

9. Pricing and Payment: Basic terms of pricing, payment conditions, and any volume discounts

10. Termination Rights: Key circumstances under which either party may terminate the arrangement

11. Governing Law: Confirmation that South African law governs the arrangement

12. Acceptance: Request for countersignature and return of copy to confirm acceptance

13. Closing: Formal closing, signature block for both parties