In a distribution agreement or distribution contract, the distributor (seller) and the supplier make agreements on the supplier’s products to be sold by the distributor in a certain region. A distributor can be appointed as an exclusive distributor or a nonexclusive.

Terms of distribution contract

The distribution agreement often includes provisions on the term of the agreement, the scope of the exclusivity of the distributor (whether geographically or certain products), the procedure of termination and -in some cases- the compensation owed to the distributor if the agreement is terminated.

Distribution in The Netherlands

Distribution agreements are not regulated under Dutch law. It comes down to general rules of contract law. Parties are free to agree whatever they want -within the limits of the law (incl. EU competition regulation).