Distribution Agreement China
6. Your distribution agreement must be applicable in the PRC. To make it enforceable, we will conceive it with Chinese law as a law in force, the Chinese language as the language of control and the application before a Chinese court. Why we design these contracts this way, read China Contracts: Make Them Enforceable Or Don`t Bother. b. If you expect this preparatory work to be independent of the distributor reaching its sales miles, the agreement should give you the right to terminate the contract if your distributor never does or insufficient preparatory work, at your sole discretion. You can do this by basing the termination on your distributor`s inability to take an early step or by providing for a separate right of termination. We should discuss. The legislation of the People`s Republic of China (PRC) does not contain specific provisions regarding agency agreements. The general provisions of the Law on Contracts of the PRC and, in particular, Articles 396 et seq. with regard to employment agreements and Articles 424 et seq. for commission contracts.
8. The concepts of “maintenance and compensation without damage” are quite alien to the Chinese system and there is no effective commercial insurance program for this type of coverage. We therefore generally provide a simple list of the fundamental obligations and commitments of the parties. We have generally provided that the merchant is liable for any damages you have caused by their failures. Since your proposed Chinese distributor is a relatively small business, you should consider that they do not have the financial means to deal with a major disaster and that you should consider taking out your own insurance. In accordance with Articles 91 et seq. of the CPP Contracts Act, the agency contract expires at the end of its agreed term, by reciprocal termination of the contract or by termination. In addition, Article 411 of the Law on Contracts of the PRC provides that an agency contract as an agent contract (Article 396 of the Law on Contracts of the PRC): “An agent contract is a contract in which the client and the agent agree that the agent must settle the affairs of the principal”) when the client or commercial agent dies, becomes insolvent or insolvent. I recommend that you do not include the price in the agreement, but rather recommend that your products be sold at your normal export price according to a price list that you regularly make available to your reseller. Therefore, where a distributor wishes to enter into an exclusive distribution agreement, it may be necessary to ensure that it is able to sell a minimum quantity of the seller`s goods or services in order to deny the need to use several distributors in order to avoid the risk of being limited to an unproductive distributor. 7.
The confidentiality agreement to which you are attached is not applicable in China. See why your NDA is worse than nothing for China. Instead of designing a separate agreement, we insert the standard China NNN language (non-use, non-disclosure, non-circumvention) into the main agreement. In China Distribution Contracts: The Questions We Ask we have written down some of the first questions we ask our customers for whom we design sales contracts in China….