Distribution Agreement

Distribution Agreement Template for Denmark

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Document background

The Distribution Agreement is a crucial commercial contract used when a supplier wishes to appoint a distributor to sell their products in specific markets. Under Danish law, this agreement type requires careful consideration of both domestic and EU regulatory requirements, particularly regarding competition law, commercial agents regulations, and territorial restrictions. The document is essential for businesses expanding their market reach through third-party distributors, providing a comprehensive framework for the distribution relationship. It typically includes detailed provisions on product supply, pricing, intellectual property rights, and compliance obligations. The agreement must align with Danish contract law principles while accommodating international trade practices, making it particularly relevant for both domestic and cross-border distribution arrangements.

Suggested Sections

1. Parties: Identification of the supplier and distributor, including full legal names and registered addresses

2. Background: Context of the agreement, including supplier's business, products, and purpose of the distribution arrangement

3. Definitions: Key terms used throughout the agreement, including Products, Territory, and Technical Information

4. Appointment and Scope: Nature of appointment (exclusive/non-exclusive), territory definition, and distribution rights granted

5. Term and Termination: Duration of the agreement, renewal provisions, and grounds for termination

6. Supply of Products: Ordering process, forecasting, delivery terms, and acceptance procedures

7. Prices and Payment: Product pricing mechanism, payment terms, and currency provisions

8. Obligations of the Supplier: Support, training, warranty provisions, and product information requirements

9. Obligations of the Distributor: Sales efforts, storage, handling, and reporting requirements

10. Intellectual Property Rights: Usage of trademarks, patents, and other IP in the distribution context

11. Confidentiality: Protection of confidential information exchanged during the relationship

12. Compliance: Regulatory compliance, including competition law and export control requirements

13. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification provisions

14. General Provisions: Standard clauses including force majeure, notices, and governing law

Optional Sections

1. Minimum Purchase Requirements: Used when supplier requires minimum purchase volumes or turnover

2. Marketing and Promotion: Include when specific marketing obligations or cost-sharing arrangements are needed

3. Non-Competition: Add when distributor is restricted from handling competing products

4. Performance Targets: Include when specific sales targets or KPIs are required

5. After-Sales Service: Used when distributor must provide specific maintenance or repair services

6. Insurance: Include when specific insurance requirements are needed beyond standard coverage

7. Data Protection: Add detailed GDPR compliance provisions if significant personal data processing is involved

8. Anti-Corruption: Include specific anti-corruption provisions for high-risk territories or industries

Suggested Schedules

1. Products Schedule: List of products covered by the agreement, including specifications and prices

2. Territory Schedule: Detailed description of geographical territory and any excluded areas

3. Minimum Purchase Quantities: Schedule of required minimum purchase volumes, if applicable

4. Service Level Agreement: Detailed service levels and performance metrics

5. Trademark Usage Guidelines: Specific rules for use of supplier's trademarks and branding

6. Technical Requirements: Technical specifications for storage, handling, and distribution

7. Commission Structure: Detailed pricing tiers and commission calculations if applicable

8. Approved Sub-distributors: List of approved sub-distributors if sub-distribution is permitted

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