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Trade Measures & Protectionism
Author Topic:   Exclusive distributorship
Steven Wong
 posted 31 July 2006 10:43 AM           
I want to understand more about the term "exclusive distributor" and I've the following questions.
1) In Hong Kong, can I a manufacturer apply exclusive distributorship to a company without a contract but just both spoken agreement?
2) Can a manufacturer sell any exclusive products to anyone without the exclusive distributor agrees?

DIY
 posted 04 August 2006 05:03 PM           
Distributor is a person who helps you to distribute or sell your
goods or the goods that you manufacture in a particular territory.
Exclusive means he is the only person the manufacturer entrusts to work for you.

1) oral agreement is possible, but difficult to enforce and creates
arguments. In other words, it is uncertain!

2) It depends on the terms and conditions of the distributorship
agreement. Normally, the manufacturer cannot sell to the territory without the consent of the exclusive distributor.

Moderator
 posted 07 August 2006 03:57 PM           
It is difficult to comment on an exclusive distributor agreement reached verbally between the principal and the distributor. An exclusive distributor agreement could involve a lot of terms and conditions of the parties concerned. It could either favour the principal or the distributor depending how the agreement is concluded. You may wish to read a sample excusive distributor agreement by checking here.

Steven Wong
 posted 11 August 2006 04:20 PM           
Thank both of you for the helpful answers.



      
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