Brexit Distribution Agreement

Posted Dezember 4th, 2020 by admin

However, the commercial impact of such a legislative change should also be taken into account. Contracts originally drawn up on the basis of EU law may also need to be reviewed as soon as the terms of the UK`s exit from the EU become clearer. IPR licences and distribution agreements developed on the basis of compliance with existing category exemption rules could be an example. However, during the transition period, the UK and the EU will have to agree on the framework for their ongoing cooperation after the end of the transition period. The UK has presented its proposals in a position paper which provides for the search for a bespoke agreement, very close to the EU rules in force in terms of jurisdiction, as they are contained in the overhaul of the Brussels Regulation. Clauses that protect against changes in monetary value are becoming more common in trade agreements. An agreement should not provide for a fixed price, but must include provisions that are taken into account in the event of a deferral of the exchange rate between the order date and the payment date greater than an agreed „exchange tolerance“. Subsequently, the supplier or client should take into account the provisions of the distribution agreement or agency that deal with the service obligations of the distributor or representative. Failure to comply with a particular obligation may allow the supplier or contracting entity to assert that the distributor or representative has committed an offence, so that the contract may be terminated for reasons that are not yet unexplained – and allow the supplier or contracting entity to avoid a claim for compensation! Therefore, if the supplier has terminated the distributor in accordance with the terms of the distribution agreement, a claim from the distributor may be submitted to the supplier for the loss of the distribution agreement. When an adjudicator power gives the same notification of termination of an agency contract, a right to compensation can be strengthened by the use of other legal rights that can be invoked by the agent. For example, under EU law, an agent may be entitled to the termination of the agency contract: this is important, because the legislation of many EU Member States may see differently the effects of Brexit – which, in any case, leads to the termination of the distribution or agency contract or a claim for compensation from traders or agents.

Given the UK`s withdrawal from the EU on 31 October 2019, without a withdrawal agreement, could there be opportunities for suppliers, contractors, distributors and agents? It is possible that the distribution or agency agreement may be subject to a right other than English law.

Comments are closed.