Master Distributor Agreement

Master Distributor Agreement Template for Denmark

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Document background

The Master Distributor Agreement is a critical commercial contract used when a supplier wishes to establish a primary distribution channel for their products in a specific territory. This agreement, governed by Danish law, creates a framework for the business relationship where the distributor typically has enhanced rights and responsibilities compared to standard distributors, often including the ability to appoint sub-distributors. The document addresses key commercial terms, compliance requirements under both Danish and EU law, territorial rights, performance expectations, and operational procedures. It's particularly important in establishing clear chains of responsibility, pricing structures, and market development strategies while ensuring compliance with Danish commercial law and EU competition regulations. The agreement is designed to protect both parties' interests while facilitating efficient product distribution and market growth.

Suggested Sections

1. Parties: Identification of the contracting parties including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, brief description of the parties' businesses, and their intentions for the distribution relationship

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Appointment and Territory: Scope of distributor appointment, territorial limitations, and exclusivity status

5. Distributor Obligations: Core responsibilities including sales targets, marketing efforts, reporting requirements, and service standards

6. Supplier Obligations: Responsibilities including product supply, support, training, and marketing assistance

7. Ordering and Delivery: Procedures for ordering products, delivery terms, and lead times

8. Prices and Payment: Pricing structure, payment terms, currency, and invoicing procedures

9. Intellectual Property Rights: Usage rights for trademarks, patents, and other IP, including restrictions and protections

10. Confidentiality: Protection of confidential information and trade secrets

11. Term and Termination: Duration of agreement, renewal provisions, and termination circumstances

12. Post-Termination: Obligations and rights after agreement termination

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

14. Force Majeure: Provisions for handling events beyond parties' reasonable control

15. General Provisions: Standard boilerplate clauses including notices, amendments, assignment, and governing law

Optional Sections

1. Minimum Purchase Requirements: Include when specific purchase quotas or targets are required, detailing minimum order quantities and consequences of non-achievement

2. Sub-Distributors: Include when the distributor is permitted to appoint sub-distributors, detailing approval processes and controls

3. E-commerce Provisions: Include when online sales are permitted, specifying requirements for websites and online marketing

4. Competition Restrictions: Include when non-compete obligations are needed, ensuring compliance with EU competition law

5. Product Modifications: Include when distributor is allowed to modify products, detailing approval processes and liability

6. Insurance Requirements: Include when specific insurance coverage is required from the distributor

7. Data Protection: Include detailed GDPR compliance provisions when significant personal data processing is involved

8. Quality Control: Include when specific quality standards must be maintained, especially for technical or regulated products

9. Training Requirements: Include when specific training programs are mandatory for distributor's staff

10. Warranty Handling: Include detailed warranty procedures when distributor handles warranty claims

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. Commercial Terms: Detailed pricing structures, discounts, rebates, and payment terms

4. Performance Targets: Specific sales targets, KPIs, and measurement criteria

5. Technical Requirements: Technical specifications, quality standards, and compliance requirements

6. Marketing Guidelines: Brand guidelines, marketing requirements, and approved marketing materials

7. Service Level Agreement: Detailed service standards, response times, and performance metrics

8. Warranty Terms: Detailed warranty terms, claims procedures, and service requirements

9. Approved Sub-distributors: List of approved sub-distributors if applicable

10. Contact Details: Key contact persons and escalation procedures for both parties

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