Document background
A Distributor Settlement Agreement is utilized when parties need to formally document the termination of a distribution relationship and settle all related matters under Belgian law. This document type is particularly important in Belgium due to the specific protective legislation (Law of 27 July 1961) that governs distribution relationships and provides significant rights to distributors, including mandatory compensation upon termination. The agreement typically becomes necessary when either the supplier decides to end the distribution relationship, reorganize its distribution network, or when both parties mutually agree to end their commercial relationship. It must carefully address the Belgian law requirements for distributor compensation, which typically includes clientele indemnity, reimbursement of investments, and potentially additional damages. The document serves to prevent future disputes by clearly documenting the settlement terms, payment arrangements, and mutual releases.
