Exclusive Distributorship Agreement
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FAQ
Exclusive distribution is an agreement between a distributor and a manufacturer that the manufacturer will not sell the product to anyone else and will sell it only to the exclusive distributor.
Exclusive Supply Agreements are defined under Section 3(4)(c) of the Competition Act, 2002 ("Act") as agreements restricting the purchaser from purchasing/dealing with goods other than those of the seller.Exclusive supply agreements are also known as 'single branding' agreements or 'quantity forcing' arrangements.
An exclusive distribution contract means only one distributor is appointed in a specific marketplace by a supplier. As part of the agreement, the supplier promises not to allow the distribution of the products by any other party in the given market area.
Exclusive distribution definition is a kind of distribution a manufacturer or supplier authorizes only one distributor to carry out within a definite region.An example of exclusive distribution is Apple solely authorizing AT&T to be the distributor of the iPhone to end users.
As discussed in the Fact Sheets on Dealings in the Supply Chain, exclusive contracts between manufacturers and suppliers, or between manufacturers and dealers, are generally lawful because they improve competition among the brands of different manufacturers (interbrand competition).
Exclusive dealing or requirements contracts between manufacturers and retailers are common and are generally lawful.
Terms and conditions of sale; term for which the contract is in effect; marketing rights; trademark licensing; geographical territory covered by the agreement; performance; reporting; and. circumstances under which the contract may be terminated.