The Exclusive Distribution Letter is a crucial document used when companies wish to establish a formal exclusive distribution arrangement without the complexity of a full distribution agreement under Austrian law. It is particularly suitable for situations where parties have an established relationship or prefer a more concise format while maintaining legal certainty. The document addresses key aspects such as territorial exclusivity, product scope, and commercial terms, while ensuring compliance with Austrian commercial law and EU competition regulations. This type of document is commonly used in international trade relationships where an Austrian company is either granting distribution rights or acting as a distributor, and needs to establish clear exclusive rights while maintaining flexibility in the commercial relationship. The letter format allows for quicker execution while still providing adequate protection for both parties' interests.
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1. Parties: Identification of the supplier and the distributor, including full legal names and addresses
2. Background/Introduction: Brief context of the business relationship and purpose of the letter
3. Appointment and Territory: Clear statement of exclusive appointment and precise definition of the territorial scope
4. Products: Description or reference to the products covered by the distribution arrangement
5. Duration: Term of the exclusive distribution arrangement, including start date and initial period
6. Commercial Terms: Key commercial aspects including pricing, payment terms, and minimum purchase requirements
7. Exclusivity Obligations: Specific obligations related to maintaining exclusivity and any exceptions
8. Acceptance and Acknowledgment: Section for distributor's signature to acknowledge and accept the terms
1. Performance Targets: Include when specific sales targets or KPIs are crucial for maintaining exclusivity
2. Marketing and Promotion: Add when specific marketing obligations or restrictions need to be outlined
3. Intellectual Property: Include when there are specific trademark or IP usage rights to be granted
4. Non-Compete: Add when additional non-competition obligations are required beyond basic exclusivity
5. Termination Rights: Include when specific termination scenarios need to be addressed
6. Confidentiality: Add when sensitive information will be shared requiring specific protection
1. Product List: Detailed list of products covered by the distribution arrangement, including specifications and prices
2. Territory Map: Visual representation or detailed description of the exclusive territory
3. Price List: Current pricing structure and any volume-based discounts
4. Performance Metrics: Detailed KPIs and measurement methods if performance targets are included
5. Trademark Usage Guidelines: Specific rules for using supplier's trademarks and branding if applicable
Relevant legal definitions
Clauses
Relevant Industries
Consumer Goods
Industrial Equipment
Automotive
Electronics
Pharmaceuticals
Food and Beverage
Luxury Goods
Machinery
Medical Devices
Chemicals
Software and Technology
Sporting Goods
Fashion and Apparel
Relevant Teams
Legal
Sales
Commercial
Business Development
Supply Chain
International Trade
Procurement
Compliance
Operations
Contract Management
Relevant Roles
Sales Director
Commercial Director
Business Development Manager
Export Manager
Distribution Manager
Legal Counsel
Commercial Manager
Supply Chain Manager
Chief Commercial Officer
Regional Sales Manager
Contract Manager
International Business Manager
Head of Sales
General Counsel
Procurement Manager
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