Distribution Agreement Non Compete Clause

There are other anti-competitive conditions that are themselves invalid, but this will not make the entire agreement invalid. If the agreement remains economically viable without these conditions, it can be withdrawn, while maintaining the rest of the agreement. It is also extremely important to indicate the right to use the U.S. distribution agreement and the jurisdiction for disputes arising therefrom. We recommend that the laws of the State in which the concessionaire has its registered office be applicable. Jurisdiction should be attributed to the judges of such a State and an arbitration clause, whether national or international, should be included in the agreement. Mission to the European Union, Boulevard du Regent 27 Brussels B-1000, Belgium For example, if you were a supplier with exclusive distribution in the north of England and had booked the south of England to market yourself to your customers, you could prohibit a merchant you have appointed in Wales from actively addressing customers in the north and south of England. You could not prohibit them from actively selling the product in Scotland if you had not appointed an exclusive distributor in Scotland or if you had not reserved Scotland exclusively for yourself. You could not have a blanket prohibition in your agreement that prevents them from selling somewhere outside their territory, as this would be too broad a restriction.

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