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Exclusive Selling Agreement Template for England and Wales

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Key Requirements PROMPT example:

Exclusive Selling Agreement

"I need an Exclusive Selling Agreement for my tech company to appoint a distributor in Northern England for our software products, with minimum purchase requirements of £500,000 annually and a 3-year term starting January 2025."

Document background
An Exclusive Selling Agreement is essential when a business wants to establish a controlled distribution channel in specific territories. This contract type, governed by English and Welsh law, defines the exclusive relationship between seller and distributor, including sales targets, territory restrictions, and performance metrics. It's particularly important for businesses seeking to maintain brand consistency, control market presence, and ensure compliance with UK competition laws. The agreement typically includes detailed provisions on pricing, marketing requirements, and intellectual property protection.
Suggested Sections

1. Parties: Identification and details of the seller and exclusive distributor

2. Background/Recitals: Context of the agreement and primary business relationship

3. Definitions: Key terms used throughout the agreement including definitions required under Sale of Goods Act 1979 and Commercial Agents Regulations

4. Appointment and Territory: Terms of exclusive appointment and defined geographical area, compliant with competition law requirements

5. Duration and Termination: Term of agreement and termination provisions, including statutory notice periods

6. Obligations of the Seller: Seller's commitments, including supply terms and support, conforming with Sale of Goods Act requirements

7. Obligations of the Distributor: Distributor's commitments, including sales targets and marketing obligations

8. Prices and Payment: Pricing structure, payment terms, and related conditions

9. Intellectual Property Rights: Usage rights and protection of trademarks and other IP

10. Governing Law and Jurisdiction: Application of England and Wales law and dispute resolution provisions

Optional Sections

1. Non-Competition: Restrictions on competing activities, subject to Competition Act 1998 compliance

2. Insurance: Insurance requirements and coverage specifications

3. Data Protection: Compliance with Data Protection Act 2018 and data handling provisions

4. Force Majeure: Provisions for unforeseen circumstances and their handling

Suggested Schedules

1. Products Schedule: Detailed list of products covered by the agreement with specifications

2. Territory Schedule: Detailed description of geographical territory and any exclusions

3. Price List: Current prices, discount structures, and payment terms

4. Performance Targets: Specific sales targets, KPIs, and measurement criteria

5. Marketing Guidelines: Brand usage requirements and marketing standards

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Sale of Goods Act 1979: Primary UK legislation governing the sale of goods, defining rights, duties and remedies in sales contracts

Competition Act 1998: Ensures the agreement complies with UK competition law and prevents anti-competitive practices

Consumer Rights Act 2015: Key legislation protecting consumer rights when the selling agreement involves consumer sales

Commercial Agents Regulations 1993: Regulations governing relationships between principals and commercial agents, including rights and obligations

Unfair Contract Terms Act 1977: Controls the use of exclusion and limitation clauses in contracts

Retained EU Competition Law: Post-Brexit retained EU law affecting exclusive distribution agreements and vertical restraints

UK Competition Law Prohibitions: Chapter I and II prohibitions on anti-competitive agreements and abuse of dominant market position

Vertical Agreements Block Exemption Regulation: Provides safe harbor for certain vertical agreements that meet specified criteria

Common Law Contract Principles: Fundamental principles covering contract formation, consideration, and enforcement

Agency Law Principles: Common law principles governing principal-agent relationships and fiduciary duties

Data Protection Act 2018: Legislation governing the processing and handling of personal data in commercial relationships

Bribery Act 2010: Anti-corruption legislation affecting commercial relationships and business practices

Modern Slavery Act 2015: Legislation requiring transparency in supply chains and prevention of modern slavery

Export Control Regulations: Regulations governing international trade and export controls for cross-border sales

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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