The following Commercial Q&A provides comprehensive and up to date legal information covering:
The scenario described in this Q&A takes elements of an agency relationship and elements of a distribution relationship; see Practice Note: Agency and distribution compared.
The key differentiating legal factor between these models relates to the manner in which the contractual lines, or relationships, between producer, intermediary and end-user sit. It is these contractual relationships which have consequences for the manner in which the ownership of goods passes.
Distribution has certain features in common with agency, but the legal structure is different. A distributor buys from a manufacturer and sells as independent principal, applying a mark-up to the manufacturer's sale price and re-s
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