Main elements of its concession contract or distribution

abogado concesionario

The concession agreement the distribution has a wide application in the usual course of business. These are the main duties and rights that must be modulated in their contract.

Obligations and rights of the grantor

  • Obligation to license the use of industrial property rights such as trademarks, trade names and know-how.
  • Pact exclusive resale to the dealer on a specific territory.
  • Provide the dealer trade and technical publications necessary for business development.
  • Maintain supply conditions and sufficient stock to ensure a level of service.
  • Granting the "warranty" repairing the products supplied in case of default.
  • Right to approve the terms of the premises and outlets, and visit and inspect where deemed appropriate.
  • Obligation of notice for termination of contract.

Obligations and rights of the concessionaire

  • Payment of the price under the conditions specified in the contract.
  • Make resale on the terms set by the contract.
  • Possibility for permission to subcontract to other retail product distribution.
  • Train your staff with the criteria and granting courses.
  • Prohibition of assignment of the rights under the contract to third parties without the approval of the grantor.
  • Prohibition of disclosure of secrets.
  • Prohibition of competition, engaging in the same activity on their own or on behalf of others during the contract.
  • Obligation to purchase only the grantor.
  • Obligation to respect the exclusive area.
  • Follow the instructions of the grantor.
  • You can negotiate the return of unsold products.

Although normally the dealer will have less bargaining power than the grantor, is necessary for the contract to defend its long-term interests. Le recommend you advise professionally.

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