The Sole Distributorship Agreement is essential for businesses seeking to establish exclusive distribution channels in New Zealand or for New Zealand companies aiming to secure exclusive distribution rights. This document is particularly relevant when a supplier wishes to maintain control over their product distribution while leveraging a local distributor's market knowledge and capabilities. The agreement typically includes comprehensive provisions covering product supply, territorial rights, performance metrics, and compliance with New Zealand regulatory requirements, including the Commerce Act 1986 and Fair Trading Act 1986. It's commonly used in situations where brand protection, market development, and controlled distribution are crucial to the supplier's business strategy.
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1. Parties: Identifies and provides full legal details of the supplier/manufacturer and the distributor
2. Background: Outlines the context of the agreement, including the supplier's business, products, and intention to appoint an exclusive distributor
3. Definitions and Interpretation: Defines key terms used throughout the agreement and sets rules for interpretation
4. Appointment and Territory: Establishes the exclusive appointment of the distributor and defines the geographical territory
5. Term and Renewal: Specifies the initial term of the agreement and any renewal provisions
6. Supply of Products: Details the terms and conditions for ordering, supply, and delivery of products
7. Prices and Payment: Sets out pricing structure, payment terms, and price review mechanisms
8. Minimum Purchase Requirements: Specifies minimum order quantities or revenue targets the distributor must meet
9. Marketing and Promotion: Outlines responsibilities for marketing, advertising, and promotion of products
10. Intellectual Property Rights: Addresses the use of trademarks, patents, and other IP rights
11. Confidentiality: Protects confidential information exchanged between parties
12. Warranties and Liability: Details product warranties and limitations of liability
13. Termination: Specifies grounds for termination and post-termination procedures
14. General Provisions: Includes standard clauses like notices, assignment, governing law, and dispute resolution
1. Training and Support: Include when the supplier provides significant technical support or training
2. Sub-distributors: Include if the distributor is permitted to appoint sub-distributors
3. Insurance Requirements: Include when specific insurance coverage is required
4. Import/Export Compliance: Include for international distribution arrangements
5. Quality Control: Include when specific quality standards must be maintained
6. After-Sales Service: Include when the distributor must provide specific after-sales support
7. Non-Competition: Include when restricting distributor from handling competing products
8. Data Protection: Include when significant personal data processing is involved
1. Schedule 1 - Products: Detailed list and specifications of products covered by the agreement
2. Schedule 2 - Territory: Detailed description or map of the exclusive territory
3. Schedule 3 - Prices: Price list and discount structure
4. Schedule 4 - Minimum Purchase Requirements: Detailed targets and measurement periods
5. Schedule 5 - Marketing Requirements: Specific marketing commitments and budgets
6. Schedule 6 - Technical Specifications: Detailed product specifications and technical requirements
7. Schedule 7 - Service Level Requirements: Performance metrics and service standards
8. Appendix A - Trademark Usage Guidelines: Guidelines for using supplier's trademarks and branding
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Retail
Consumer Goods
Electronics
Automotive
Pharmaceuticals
Food and Beverage
Industrial Equipment
Fashion and Apparel
Technology
Medical Devices
Construction Materials
Agriculture
Relevant Teams
Legal
Commercial
Sales
Business Development
Supply Chain
Operations
Procurement
Distribution
Channel Management
Contract Administration
Relevant Roles
Commercial Director
Sales Director
Business Development Manager
Distribution Manager
Supply Chain Manager
Chief Commercial Officer
Legal Counsel
Contracts Manager
Operations Director
Channel Manager
Regional Sales Manager
Managing Director
Chief Executive Officer
Procurement Manager
Commercial Manager
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