23 Feb 2008 03:21:36 | Eitan Adasha
The Information contained at this web site is not intended to be
relied upon a legal advice. Persons seeking legal advice should
consult a licensed Israeli advocate.
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DISTRIBUTION AGREEMENTS IN ISRAEL
By Eitan Adasha, Advocate
Distribution agreements are agreements that are usually
established between distributors and manufactures for the
distribution of goods or services created by manufacturers and
distributed by distributors.
The applicable legal rules which govern this area are the
various Contract Law rules which have been established by the
relevant statutes and case law.
Not only oral agreements but also written agreements are
enforceable under the Israeli law and therefore even oral terms
or terms contained in documents other than the formal agreement
are binding and enforceable.
Parties to distribution agreements can avoid disputes by paying
attention to the following:
1. The parties should sign a written contract that contains the
various terms.
2. The various terms of should be drafted using a clear language.
3. The contract should contain a termination mechanism, namely,
a mechanism by which a party to the contract can terminate the
contract.
4. The length of the contract and the circumstances pursuant to
which the contract will be renewed.
5. The geographic areas in which the distributor is allowed to
operate.
6. The contract should clearly define the nature of the
exclusivity rights (if granted).
In conclusion distribution agreements should be clearly
documented using a formal contract that covers the main terms
and various situations the parties may face during the contract
period.
About Author :
Eitan Adasha is an advocate and the manager of "Eitan Adasha-Law
Office", an Israeli law office that deal with Business
/Commercial Law cases including contract disputes, contract
creation & review, litigation, debt collection & taxation. For
more information do not hesitate to browse our web site.
