Agreement Between Distributor And Company In India

The termination of the contract without notice is permitted in India, provided that the terminated party grants the other party an appropriate termination or compensation. The supplier is not legally required to renew the contract after the deadline. The Indian courts have held that even in the absence of a termination clause in the contract allowing both parties to terminate the contract, the contract may be terminated instead of termination without justification and by termination or appropriate payment of compensation. What consumer protection laws are relevant to a supplier or distributor? Are there ways for a merchant or supplier to prevent possible imports of supplier products into its territory? Indian competition law regulates the relationship between suppliers and their distributors. In addition to the aforementioned restrictions and rules, competition laws prohibit the following agreements: sub-agents. The distributor may designate sub-agents, negotiators, sub-representatives or others who act on behalf of the distributor or otherwise fulfill the distributor`s obligations under this agreement within the territory; provided that (i) any compensation for these sub-agents, sub-agents, sub-representatives or other persons, to act on behalf of the distributor or to discharge any other of the distributor`s obligations, is exclusively the responsibility of the distributor, and (ii) that appointment does not deprive the entity of the essential rights to which it is entitled under this Agreement. An agreement with this sub-agent, negotiator, deputy representative or any other person does not exceed the duration of this agreement. The relationship between the supplier and the distributor is essentially based on the contract between the parties. The Indian Contract Act 1872 (Contract Act) governs the basic principles of the treaty. There is no government agency that regulates the entire relationship between the foreign supplier and the Indian distributor. However, some government authorities have regulatory tasks based on specific legal issues for which the government authority has a legislative mandate to enforce a specific law.

For example, the Indian Competition Commission (ICC), which guarantees that a contractual agreement between the parties does not have a material negative effect on competition in the Indian market in question or creates barriers to new entrants or excludes competition. Technology transfer agreements are common and legally applicable in India, provided they are not anti-competitive or erode to an abuse of dominance under competition law. Can the distribution agreement determine which party is responsible for the execution and absorption of recall costs? a. Exclusive appointment. Subject to the terms of this dealer agreement, the company designates and grants the distributor the exclusive right to sell and distribute the products to customers in the territory (the «customers») and to provide non-distributor services to the company, as stated here in this section.