Distributorship And Agency Law
Entering a foreign market involves both considerable investment and risk. Some of these risks can be limited by using agents or distributors instead of establishing a branch office or a subsidiary in a foreign country. We help clients in drafting agreements and pursuing and defending against breaches of sales contracts – taking into consideration the application of the UN Convention on the International Sale of Goods. Because distributorship and agency law varies from country to country and involves the UN laws, it is important to engage a law firm with experience in representing clients in foreign markets.
Whether to engage an agent or a distributor is an important consideration for any business. The agency relationship is usually more flexible and allows the principal to retain higher gross profit. On the other hand, a distributor will usually be better established in the foreign market. Frequently, engaging a distributor will be unavoidable. Our experience in international business law provides clients who are engaged in foreign markets or who wish to enter foreign markets with a significant advantage.