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Sole Selling Rights Agreement

Sole Selling Rights Agreement Template for Austria

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Key Requirements PROMPT example:

Sole Selling Rights Agreement

"I need a Sole Selling Rights Agreement under Austrian law for my company's luxury watch distribution business, granting exclusive rights to a distributor for the German and Swiss markets, with minimum annual purchase requirements of €2M and the agreement to commence on March 1, 2025."

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Document background
The Sole Selling Rights Agreement is a crucial commercial contract used when a business wants to establish an exclusive distribution channel for its products in a specific territory. This document, governed by Austrian law, grants one distributor the exclusive right to sell designated products, thereby preventing the principal from appointing other distributors or selling directly within the specified area. The agreement typically includes detailed provisions on minimum purchase requirements, marketing obligations, territory definitions, and performance targets. It's particularly important for businesses expanding into new markets who want to ensure dedicated distribution while maintaining control over their brand and product representation. The document must comply with both Austrian commercial law and EU competition regulations, particularly regarding territorial restrictions and exclusivity provisions.
Suggested Sections

1. Parties: Identification and details of the Principal (supplier) and the Distributor

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Territory: Grant of exclusive selling rights and definition of the territorial scope

5. Duration and Termination: Term of the agreement, renewal provisions, and termination circumstances

6. Products: Description and scope of products covered by the agreement

7. Exclusivity Obligations: Detailed terms of exclusivity, including restrictions on both parties

8. Minimum Purchase Requirements: Minimum order quantities or sales targets required to maintain exclusivity

9. Prices and Payment Terms: Pricing structure, payment conditions, and any price adjustment mechanisms

10. Delivery and Logistics: Terms regarding delivery, shipping, and handling of products

11. Marketing and Promotion: Obligations regarding marketing, advertising, and promotion of products

12. Intellectual Property Rights: Usage rights for trademarks, patents, and other IP

13. Confidentiality: Protection of confidential information and trade secrets

14. Governing Law and Jurisdiction: Specification of Austrian law as governing law and jurisdiction for disputes

Optional Sections

1. Non-Competition: Additional restrictions on competing activities, used when stronger protection is needed

2. Training and Support: Include when the Principal provides specific training or technical support

3. Stock Requirements: Used when specific inventory levels must be maintained

4. Quality Control: Include for products requiring specific quality standards or certifications

5. After-Sales Service: Required when products need warranty service or maintenance

6. Insurance: Include when specific insurance coverage is required

7. Force Majeure: Define circumstances beyond parties' control affecting performance

8. Data Protection: Include when personal data processing is involved

9. Change of Control: Include when agreement should address ownership changes

Suggested Schedules

1. Schedule 1 - Product List: Detailed list of products covered by the agreement

2. Schedule 2 - Price List: Current prices and any volume-based discounts

3. Schedule 3 - Territory Map: Detailed definition of the exclusive territory

4. Schedule 4 - Sales Targets: Specific sales targets and measurement periods

5. Schedule 5 - Marketing Guidelines: Specific requirements for marketing and brand usage

6. Schedule 6 - Technical Specifications: Product specifications and technical requirements

7. Appendix A - Reporting Templates: Standard forms for regular sales and performance reporting

8. Appendix B - Quality Standards: Detailed quality control procedures and standards

Authors

Alex Denne

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Products
Territory
Commencement Date
Initial Term
Renewal Term
Minimum Purchase Requirements
Quarter
Year
Business Day
Confidential Information
Force Majeure Event
Intellectual Property Rights
Net Sales
Principal
Distributor
Purchase Price
Sales Targets
Specifications
Trade Marks
Marketing Materials
Competing Products
Customer
Delivery Point
Group
Quality Standards
Technical Documentation
Warranty Period
Working Hours
Applicable Laws
EU Competition Laws
Exclusive Rights
Order
Payment Terms
Performance Report
Termination Date
Contract Year
Effective Date
Clauses
Appointment
Exclusivity
Territory
Term and Duration
Termination
Product Supply
Pricing
Payment Terms
Delivery
Minimum Purchase Requirements
Performance Obligations
Marketing and Promotion
Quality Control
Intellectual Property
Confidentiality
Non-Competition
Warranties
Indemnification
Force Majeure
Assignment
Notices
Dispute Resolution
Governing Law
Entire Agreement
Severability
Amendments
Insurance
Compliance with Laws
Data Protection
Audit Rights
Reports and Records
Training and Support
Stock Requirements
After-Sales Service
Change of Control
Relevant Industries

Consumer Goods

Industrial Equipment

Automotive

Electronics

Pharmaceuticals

Fashion and Luxury

Food and Beverage

Construction Materials

Medical Devices

Machinery and Tools

Software and Technology

Sporting Goods

Relevant Teams

Legal

Commercial

Sales

Business Development

Operations

Supply Chain

Procurement

International Trade

Compliance

Finance

Distribution

Relevant Roles

Commercial Director

Sales Director

Business Development Manager

Legal Counsel

Contract Manager

Distribution Manager

Supply Chain Manager

Chief Commercial Officer

Regional Sales Manager

Operations Director

Procurement Manager

Channel Manager

Export Manager

Territory Manager

Industries
Austrian Civil Code (ABGB - Allgemeines bürgerliches Gesetzbuch): Fundamental legislation governing contract law principles, including formation, interpretation, and general obligations of contracts
Austrian Commercial Code (UGB - Unternehmensgesetzbuch): Regulates commercial relationships and transactions between businesses, including specific provisions for commercial contracts
Austrian Commercial Agents Act (HVertrG - Handelsvertretergesetz): Specific regulations for commercial agency relationships, which are relevant for sole selling rights arrangements
Austrian Cartel Act (KartG - Kartellgesetz): Regulates competition law aspects, particularly relevant for exclusive distribution agreements
EU Competition Law (particularly Article 101 TFEU): European Union regulations on competition, which may affect vertical agreements and exclusive distribution rights
Austrian Consumer Protection Act (KSchG - Konsumentenschutzgesetz): May be relevant if one party qualifies as a consumer under Austrian law
Austrian Enterprise Introduction Act (UGB-Einführungsgesetz): Contains transitional provisions and specific rules for commercial contracts
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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