- Original Poster
- #1
Hi guys,
We are currently in talks with a small firm in the US regarding EU distribution of their products. We have sent a draft agreement back and forth, however there is one sticking point that I cant seem to get my head around to find a resolve for.
Basically, the company wants to add a clause that the agreement by up for renewal annually- and as such at that renewal any necessary changes can be made it it, which would undoubtedly mean that the contract itself could be ended.
This is obviously a concern for us as it could theoretically mean that our efforts and resources would be used into launching the brand over here, and that in a years time our rights could be stripped and handed over to someone else. I want to protect that from happening without due cause.
At the moment, there are no minimum order requirements in the agreement, and I suggested that we add that in with the agreement that if these were not met by ourselves, they would have the ability then to withdraw the contract. This is what we have written into another, much larger, agreement with another US company, but as this is a smaller firm with a smaller manufacturing base, a minimum quantity clause would be bit trickier to work in to the contract.
As such, she is still very hesitant to sign without an annual renewal clause, and I am hesitant to agree to one being added.
Am I missing something obvious that would potentially work for both of us rather than that particular clause?
We are currently in talks with a small firm in the US regarding EU distribution of their products. We have sent a draft agreement back and forth, however there is one sticking point that I cant seem to get my head around to find a resolve for.
Basically, the company wants to add a clause that the agreement by up for renewal annually- and as such at that renewal any necessary changes can be made it it, which would undoubtedly mean that the contract itself could be ended.
This is obviously a concern for us as it could theoretically mean that our efforts and resources would be used into launching the brand over here, and that in a years time our rights could be stripped and handed over to someone else. I want to protect that from happening without due cause.
At the moment, there are no minimum order requirements in the agreement, and I suggested that we add that in with the agreement that if these were not met by ourselves, they would have the ability then to withdraw the contract. This is what we have written into another, much larger, agreement with another US company, but as this is a smaller firm with a smaller manufacturing base, a minimum quantity clause would be bit trickier to work in to the contract.
As such, she is still very hesitant to sign without an annual renewal clause, and I am hesitant to agree to one being added.
Am I missing something obvious that would potentially work for both of us rather than that particular clause?
