Q&As

Which Precedent agreement options should a company consider when supplying a product to end-customers via a representative third party?

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Published on LexisPSL on 15/02/2018

The following Commercial Q&A provides comprehensive and up to date legal information covering:

  • Which Precedent agreement options should a company consider when supplying a product to end-customers via a representative third party?
  • Agency
  • Distribution
  • Franchising
  • Separate licensing arrangement

Which Precedent agreement options should a company consider when supplying a product to end-customers via a representative third party?

In answering this Q&A, we have focussed on the commercial models of agency, distribution and franchising as suggested ‘go to market’ options, and also licensing arrangements. Other models or agreements, or a combination of models and agreements, may be suitable for the circumstances in question.

Agency

Agency is an arrangement under which a principal appoints an agent to act at its direction for specified purposes. In business, agents are commonly appointed for the purposes of introducing and concluding agreements with new customers, marketing or customer support. The agent is given authority by its principal for specified purposes. The agent contracts on the principal's behalf rather than on its own.

For an introduction to agency relationships, see: Agency—overview. For more detailed information on the different types of agency that may be suitable for your situation, see Practice Note: Nature and types of agency.

We have a number of agency Precedents which could be adapted for your purposes which can be found in: Agency—overview Precedents tab. These include:

  1. Sales and marketing agency agreement for goods—non-exclusive—pro-principal (the agreement does not provide for any exclusivity for the agent); also see the accompanying Drafting Notes which explain what the Precedent can be used for and the effect of each clause

  2. Sales and marketing agency agreement

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