Agent vs Distribution agreement

[mforgey]

Hello everyone!

I have some questions regarding my company and I hope anyone can add their input.

I am a sole exclusive distributor in the UK of a product from Europe and have authority from the European country regarding this.

I have been approached by companies and individual sellers in the Industry sector of my company in the UK that want to sell the products I am selling. However this will be under my company name and branding.

I have also been approached by individuals who want sell my company products for a small commission once the sale has been completed. I.e like a finders fee.

I was advised by a local business consultancy meet-up that the best approach would be to set up an agency contract agreement, with my company acting as the principal. This would allow individuals or companies to sell my company products under my company name.

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Would this not be a distribution contract?

The business meet-up told me to write an agency contract drafted to protect my position as Principal but not unreasonably biased…can anyone explain what does this mean unreasonably biased?

I was told to construct the contract to allow fluid contractual agreements
- Minimum sales target
- Defined term for products that that agent may act
- Defined territory
Should there be anything else?

I was told to make sure in the contract that I have to use non-exclusive agent - appointing an agent as a non-exclusive basis gives me flexibility to appoint more than one agent. But the agent has authority to negotiate and to conclude contracts on my behalf…. I do not want the agent to construct contracts on my behalf without written consent how would I put this into the contract?

Can anyone give me any other important aspects to put into the agency contract?

kind regards Mike

 

[mforgey]

Anyone?

 

[MBE2017]

I would see this as a sales agent agreement personally.

Unreasonable biased, you need the agreement to work for both of you. Therefore you would set out an area or sector of an industry the agent could work, you would set out a sensible target to make it worth your time and effort dealing with the agent, but not so unrealistic that the agent does not believe it can be achieved, targets are meant to increase sales figures, not demotivate people.

As for the rest, you would set the price, any discounting or variance should be required in advance in writing. As you can see, this could be a huge help to you, or a big headache, or both. Running agents either on the books or self employed is a lot of hard work, so choose wisely.

 

[mforgey]

Thanks so it wouldn’t be a distribution agreement?

 

[MBE2017]

Thanks so it wouldn’t be a distribution agreement?

Call it whatever you want.