Document background
This document is essential for businesses seeking to establish exclusive distribution arrangements in South Africa. A Sole Distributor Agreement is typically used when a manufacturer or supplier wishes to grant exclusive rights to a single distributor to sell and market their products within a specified territory. The agreement must comply with South African competition law, B-BBEE requirements, and other relevant regulations. It includes detailed provisions on exclusivity rights, performance targets, territory definitions, pricing structures, and compliance obligations. This type of agreement is particularly important in the South African context where market access and economic empowerment considerations play a crucial role in commercial relationships. The document provides comprehensive protection for both parties while ensuring alignment with local regulatory requirements and business practices.
