Agency and Distribution Contracts in an International Context

The Issue of Choosing for  the Appropriate Jurisdiction | Written by for the Fall/Winter 2015 issue of USLAW Magazine

Doing business abroad proves not only a commercial challenge but also a legal one, raising questions like: should I conduct the sales myself or should I appoint someone else to handle the foreign market? And if I appoint such a third party what kind of contractual relationship suits my business best? And if a contract is drawn up, which law should be applicable? This article will briefly discuss the differences between agency- and distribution contracts and the question by which law those contracts should be governed.

AGENCY VERSUS DISTRIBUTION

For a company, setting up a sales organization from scratch in a foreign market can be a hassle, financially as well as legally. For that reason, it can be quite beneficial to seek a partnership with a third party who knows the market. Generally, this partner is either an agent or a distributor… READ MORE