Distribution and agency agreements perform a key function in domestic and international trade.
Producers and suppliers engage distributors and/or agents to get their products to the end users. In the Netherlands, there are crucial differences between distributors and agents. Whereas a business agent acts on behalf and for the account of a producer or supplier (their ‘principal’) and receives a commission for every agreement he concludes, a distributor purchases the product from a supplier or producer for his own account and risk and then sells it to end users at a margin. Furthermore, under Dutch law, an agent is often entitled to a goodwill indemnity upon termination of the agreement, whereas a distributor is not. In other words, an agent enjoys greater protection than a distributor.

In many other countries, by contrast, distributors are granted much the same protection as agents. When concluding international distribution agreements it is therefore crucial to set out the contract details very precisely.
This includes specifying the law applicable to the distribution relationship and the competent court in the event of a dispute, thereby avoiding unfounded expectations and unnecessary disputes. With our extensive knowledge and expertise in the field of distribution, we can provide any assistance you require.