Document background
The Exclusive Distribution Letter is commonly used in the Dutch market when parties wish to formalize an exclusive distribution arrangement in a more concise format than a full agreement, while maintaining legal enforceability. It's particularly suitable for situations where parties have established trust and prefer a more streamlined document, or when time is of essence in establishing the distribution relationship. The letter format, while shorter, still addresses critical aspects such as territory definition, exclusivity terms, commercial conditions, and compliance with Dutch and EU competition laws. This document typically precedes or may sometimes substitute a more comprehensive distribution agreement, depending on the complexity of the arrangement and the parties' preferences. The Exclusive Distribution Letter must carefully balance commercial flexibility with legal certainty, ensuring compliance with both Dutch civil law requirements and EU competition regulations regarding vertical agreements.
