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Costa Rica Import Regs.: Agent/Distributor Contract Princip

Questions and answers about prohibited imports, labeling requirements, customs valuation as well as tariffs & taxes of Costa Rica.

Costa Rica Import Regs.: Agent/Distributor Contract Princip

Postby bridgat » Tue Nov 18, 2008 4:24 am

Agent/Distributor Contract Principles

The following is a guide to some of the matters that may need to be considered when preparing an agent or distributor agreement.

· Parties included.
· Territory involved.
· Products involved - description, catalogue.
· New products - policy for new products.
· Period of agreement - depends on the product, usually three years with right of renewal. A termination clause should be included - so many months' notice by either party and any time by mutual agreement.
· Probationary period - one year with review of performance after six months.
· Prices - refer to the price list.
· Discounts - promotional discounts and responsibilities. The agreement should include the principles to work on, not the detail.
· Method and timing of payment.
· Minimum orders.
· Production scheduling and lead times.
· Territory exclusivity for distributor.
· Exporter to refer enquiries to distributor.
· Distributor not to re-sell out of territory.
· Restraint of trade following termination of agreement.
· Spares and stock - distributor to hold stock/spares only, not an agent.
· Communication costs - each party to cover their own costs.
· Performance measures.
· Training and technical support.
· Samples.
· Advertising and promotion.
· Ownership of brand.
· Distributor to protect trademarks, patents, etc.
· Exchange of market information.
· Procedures for defective goods.
· Distributor to keep books of accounts.
· Relationship management - contact list, official addresses, etc.
· Confidentiality.
· Early termination for breach of agreement.
· Transfer of rights - distribution rights cannot be transferred without permission.
· Country in which legal action/arbitration to take precedence.
· Arbitration - a last resort.
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