Drafting Distribution Agreements in Cyprus
Drafting Distribution Agreements in CyprusUpdated on Tuesday 12th July 2016
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All companies in Cyprus are required to respect the applicable legislation referring to various types of business activities. When performing an activity which involves the assistance of another legal entity, the two parts have to sign agreements and contracts, which stipulate the rights and the obligations of the parties, the ways in which such activities should be performed and many others. One of the documents which should be drafted refers to the distribution agreements, which are signed between the supplier and the distributor of various goods on the local or foreign market. Our team of Cypriot lawyers can provide their legal input for the drafting of the distribution agreements, as required by the local rules.
Cypriot distribution agreements
The European legislation provides a model referring to the main provisions of the distribution agreements, but there may be variations on the document, as there is no specific law which regulates such documents. However, it is important to know that the main aspects included in the distribution agreement should respect the regulations of the Contract law and the Competition law; our team of Cypriot attorneys can present more details in this sense.
When signing a distribution contract, the parties should provide the following information:
• the name of the legal entity;
• the address of the business office;
• registration information;
• the name of the company’s representative.
Key aspects of the distribution agreement in Cyprus
The terms of the agreement should clearly stipulate the period in which the document is valid, the main object of the contract (the products and their specifications) and the territory in which the agreement is enforced.
At the same time, the supplier should also state if the distributor has exclusive on non-exclusive rights of distribution, who will market the products as agreed in the contract. It is important to know that the distributor is the one who should accept the risks of the contract, having in mind that he is the one who will address to the end-consumer.
It is necessary to state provisions which refer to confidentiality and intellectual property aspects (applicable to the distributor).
Persons who need further details on the drafting of the distribution agreements in Cyprus can contact our Cypriot law firm for legal assistance.