ICC Model Selective Distributorship Contract
For the marketing of products through a network of qualified retailers
This new title in the series of ICC model contracts, prepared by the ICC Commission on Commercial Law and Practice (CLP), covers agreements which allow the exporter to better control the way his products are marketed by creating a direct link between the exporter and the retailers who sell his products to the end consumer.
What Selective distribution means?In some cases, the exporter may wish to establish a direct link with the retailers in order to control the way in which his products are marketed and provide a certain level of sales service to the consumer.
The producer may wish to:
market technically sophisticated products only through retailers who can give competent technical advice;
ensure that products with an exclusive image are sold only in shops having certain high level characteristics (location, fittings, etc.).
The ICC Model Selective Distributorship Contract is one means of ensuring that products are marketed through a network of qualified resellers.Of course the above can be warranted only if the products are sold by retailers who fulfil the selection criteria.Consequently, selective distribution necessarily implies a closed network, obtained by preventing all its members, including the producer, from selling to non-authorized resellers.
The ICC Model Selective Distributorship Contract provides a sound legal basis upon which parties can quickly establish an even-handed agreement acceptable to both sides. It saves resources for companies and their legal advisers.
Terms of the Contract
Distributor's minimum purchase obligation
Suppliers general conditions of sale